WASHINGTON, USA – The US government launched an investigation on 11 March into industrial overcapacity among 16 major trading partners, including Thailand, while preparing a parallel case targeting imports made with forced labour.
New US investigation hits 16 trading partners
The announcement was made in Washington, D.C. on 11 March, where the US administration opened a review against 16 significant trading partners. Thailand was on the list, rekindling debate over potential trade barriers for exports from Southeast Asia to the US.
US Trade Representative Jamieson Greer said the move was aimed at economies suspected of maintaining excess industrial capacity that could distort global markets. He indicated that the process could lead to new measures as early as the summer.
Section 301 – the sharp edge of US trade law
According to Greer, the probe was being conducted under Section 301 of US trade law, a tool that allowed the government to respond with far‑reaching actions up to and including punitive tariffs.
“The investigation could result in new tariffs against China, the EU, India, Japan, South Korea and Mexico by the summer.”
said Greer, US Trade Representative.
Section 301 had long served as one of Washington’s most powerful instruments to address what it viewed as unfair trade practices. The current review put several of the world’s largest economies on notice over their industrial policies.
Who else was in the crosshairs – and who was not
Beyond the major economies, the investigation also covered Taiwan, Vietnam, Malaysia, Cambodia, Singapore, Indonesia and Bangladesh, as well as Switzerland and Norway. These countries were cited alongside Thailand as part of a wider look at industrial capacity and trade flows.
Notably, Canada, the second‑largest trading partner of the United States, was not named as a target in the proceedings. The omission drew attention to the selective scope of the review.
How the US defined overcapacity
Greer said the focus was on economies showing signs of structural overcapacity in industry, such as persistently high production relative to demand.
“We are looking at indicators like large trade surpluses or unused production capacity that can put pressure on prices and competitors in import markets.”
said Greer, outlining the criteria.
According to his explanation, these patterns could undermine competitors in markets where the goods were sold, potentially prompting US action. Overcapacity was seen as a structural issue rather than a short‑term fluctuation.
Second case – imports made with forced labour
In addition to the overcapacity probe, Greer announced that the US would open another Section‑301 investigation on 12 March targeting imports produced with forced labour. This second case was designed to scrutinise supply chains where coercion or exploitation might be involved.
The forced‑labour review was expected to cover more than 60 countries worldwide, making it significantly broader than the overcapacity investigation. It signalled an expanded US focus on labour conditions in global trade.
Diplomacy in the background – talks with China in Paris
The trade steps came in a week when US officials, led by Treasury Secretary Scott Bessent, were preparing talks with senior Chinese representatives in Paris. The diplomatic contacts formed the backdrop to the new investigations.
At the same time, a possible meeting between Donald Trump and Chinese President Xi Jinping in Beijing later in the month was under consideration. How firmly the US followed through on its line against overcapacity and forced labour was expected to determine whether the moves became concrete trade barriers or primarily political pressure.