Trade Policy Guide · Updated May 22, 2026

Section 301 Investigations 2026: 60 Countries, New Tariffs

USTR launched the largest Section 301 investigation sweep in history in March 2026 — 60+ countries, two tracks, determinations before July 24. Here's what importers need to know.

8-min read · Last updated May 22, 2026

Investigation Timeline — 2026

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Investigations Initiated

March 2026

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Public Hearings

May 5, 2026

Determinations

By Jul 24, 2026

New Tariffs Take Effect

Post-Jul 24, 2026

In This Guide

Post-IEEPA Context: The Trade Policy Transition
Investigation Scope: 60+ Countries, Two Tracks
Country-by-Country Exposure Assessment
Why Section 301 Is the Preferred Long-Term Authority
Importer Action Checklist
Frequently Asked Questions

Section 1

Post-IEEPA Context: The Trade Policy Transition

The Section 301 investigations are the third and most durable phase of a three-stage US tariff architecture that emerged in early 2026:

The Three-Stage Transition

Stage 1 — IEEPA (pre-Feb 20, 2026): Broad emergency tariff authority invoked under the International Emergency Economic Powers Act. Open-ended duration, controversial legal basis. Stage 2 — Section 122 (Feb 24 – Jul 24, 2026): Congressional-authorized emergency tariff with 150-day hard ceiling. 10% flat rate, USMCA-exempt. Bridge measure. Stage 3 — Section 301 (post-Jul 24, 2026): Permanent, country-specific, legally durable tariff authority with no rate cap and no expiration. The destination.

The Supreme Court's February 20, 2026 ruling striking down the IEEPA emergency declaration created an immediate policy vacuum. Section 122 was invoked within days as a Congressional-authorized stopgap. But the administration was simultaneously preparing the Section 301 framework — launching investigations in March 2026, well before Section 122 expires, to ensure a seamless transition of tariff authority.

The strategic logic is clear: Section 122 is a bridge, Section 301 is the destination. USTR's investigation timeline — initiated in March, hearings in May, determinations by July 24 — is precisely calibrated to replace Section 122 authority the day it expires.

60+

Countries under active Section 301 investigation

Countries under excess capacity investigation (primary track)

May 5

Public hearings held — USTR testimony from industry

Jul 24

Determinations expected — coinciding with Section 122 expiry

Section 2

Investigation Scope: 60+ Countries, Two Tracks

The 2026 Section 301 investigations operate across two distinct tracks, each with a different legal basis and focus area:

Track 1: Structural Excess Capacity (16 Countries)

This track examines whether foreign government subsidies, state-directed manufacturing mandates, and industrial overcapacity policies constitute "unreasonable or discriminatory" practices under Section 301 of the Trade Act of 1974. The investigation mirrors the logic that justified the original 2018 China Section 301 tariffs, but extends it to 16 economies based on evidence of similar policies in steel, aluminum, semiconductors, solar panels, electric vehicles, and other strategic sectors.

The 16 countries under excess capacity investigation are:

China · Germany · France · Italy · Spain · Japan · South Korea · Vietnam · India · Mexico · Taiwan · Thailand · Indonesia · Brazil · Malaysia · Turkey · Bangladesh · Cambodia

Track 2: Forced Labor (60+ Countries)

This broader track examines labor practices across supply chains in 60+ countries. The investigation builds on the Uyghur Forced Labor Prevention Act (UFLPA) enforcement infrastructure and expands it to a global scope. Key focus areas include:

Uyghur Region (China) — Already subject to UFLPA with existing enforcement; investigation may expand product coverage and evidentiary standards
Southeast Asia — Bangladesh, Cambodia, Myanmar, Vietnam supply chains under scrutiny for labor conditions in apparel, footwear, and electronics
Latin America — Brazil, Mexico, and Central American countries examined for agricultural and manufacturing supply chain labor compliance
South Asia — India, Pakistan, Bangladesh textile and garment supply chains under review

Importer Risk: Forced Labor Track

The forced labor track presents a distinct compliance risk from excess capacity tariffs. Even if a country avoids Section 301 economic tariffs, goods found to involve forced labor can be seized by CBP under UFLPA authority — effectively blocking entry regardless of duty rate. The remedy for forced labor findings is seizure, not a tariff. Both tracks are in play simultaneously.

Section 3

Country-by-Country Exposure Assessment

The following table summarizes the investigation track and risk level for the most trade-significant countries:

Country	Investigation Track	Risk Level	Key Sectors	Importer Notes
China	Excess capacity + Forced labor	HIGH	Electronics, solar, EVs, steel, semiconductors, apparel	Existing Section 301 lists active; likely new determinations add sectors not yet covered. Highest total tariff exposure of any country.
Vietnam	Excess capacity + Forced labor	HIGH	Electronics, apparel, footwear, furniture	Major manufacturing relocation destination from China; significant new tariff risk as Section 301 targets supply chain diversification itself.
India	Excess capacity + Forced labor	MEDIUM	Pharmaceuticals, textiles, IT hardware	Under investigation for pharmaceutical and textile overcapacity. USMCA not available as alternative (India has no US FTA).
Japan	Excess capacity	MEDIUM	Automotive, electronics, machinery	Japan has strong US political relationships; targeted sector-specific rates more likely than broad tariffs. Automotive most exposed.
South Korea	Excess capacity	MEDIUM	Electronics, steel, automobiles	US-Korea Free Trade Agreement (KORUS) in effect; some goods may qualify for preferential treatment on MFN base rates. Section 301 targets non-FTA goods.
Mexico	Excess capacity	WATCH	Automotive, electronics, agriculture	USMCA provides strong protection against Section 122 and most Section 301 tariffs. Country-of-origin compliance critical. Mexico flagged for potential automotive sector targeting.
Germany / EU	Excess capacity	MEDIUM	Automotive, machinery, chemicals	Germany faces highest risk within EU. Automotive sector specifically targeted. EU collectively investigated but Germany most exposed.
Bangladesh	Excess capacity + Forced labor	HIGH	Textiles, apparel, garments	Textile sector already subject to UFLPA-equivalent scrutiny. Forced labor track creates entry seizure risk for apparel from Bangladesh factories.

Screening Tool

Use /screen to check whether your suppliers are in any of the countries or entities under active investigation — including UFLPA's forced labor entity list.

Section 4

Why Section 301 Is the Preferred Long-Term Authority

Section 301 is the administration's chosen vehicle for permanent US tariff policy for structural reasons that matter to every importer:

No Rate Cap

Section 122 is capped at 15%. Section 301 has no statutory ceiling. EV tariffs of 100%, medical supply tariffs of 50%, semiconductor tariffs of 25% — all within Section 301 authority. For strategic sectors like semiconductors and clean energy, rates can exceed anything Section 122 could legally impose.

No Time Limit

Section 122 expires automatically in 150 days. Section 301 remains in force until USTR affirmatively modifies or withdraws the determination — which requires a new Federal Register notice and typically years of procedural review. Section 301 tariffs imposed in 2018 remain in force eight years later.

Legally Durable

China challenged the original Section 301 tariffs at the WTO and lost. Section 301's basis in "unreasonable or discriminatory trade practices" has survived every legal challenge. Section 122's emergency declaration basis was struck down by the Supreme Court in February 2026. For importers planning multi-year supply chain decisions, Section 301's legal durability is a material factor.

Targeted and Specific

Section 122 applies uniformly at 10% to all non-exempt imports from all countries. Section 301 can be targeted — countries, sectors, products, or technology categories. This allows the administration to apply maximum pressure on strategic competitors while avoiding economic disruption in allied nations. Importers in non-targeted sectors or countries may find Section 301 creates less disruption than Section 122's broad brush.

Section 5

Importer Action Checklist

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Map your supply chain by country — For every SKU, confirm the country of origin. Section 301 tariffs apply by country, not by importer. A product assembled in Vietnam from Chinese components faces different treatment than one originating entirely in Vietnam.
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Check existing Section 301 coverage — Use the /classify tool to check if your HTS codes appear on existing Section 301 lists (Lists 1-4A). China goods already face 7.5–100% additional Section 301 tariffs; new determinations may extend coverage to product categories not yet targeted.
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Model tariff scenarios for H2 2026 — Run rate calculations using /calculate assuming: (a) no Section 301 replacement, (b) 10-15% new Section 301 rates on your country of origin, (c) 25-50% sector-specific rates. Budget for scenario C to avoid margin shocks.
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Audit forced labor compliance — For suppliers in Bangladesh, Cambodia, Vietnam, and China (Xinjiang), verify compliance with UFLPA standards. CBP enforces UFLPA with no de minimis exemption — goods can be seized at the port regardless of shipment value.
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Monitor Federal Register for USTR notices — Determination notices are published at federalregister.gov/ustr. Subscribe to notices for "Section 301" — this is how you learn about tariff determinations before they take effect.
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Consider USMCA restructuring for Mexico/Canada exposure — USMCA provides strong protection against Section 301 for qualifying goods. Review your Mexico-sourced goods to confirm rules of origin compliance. Mexico as a sourcing base is far safer under USMCA than under bilateral Section 301 exposure.

Section 6

Frequently Asked Questions

In March 2026, USTR initiated Section 301 investigations covering over 60 countries in two tracks: (1) Structural excess capacity investigations against 16 economies (China, EU member states, Japan, South Korea, Vietnam, India, Mexico, Taiwan, Thailand, Indonesia, Brazil, Malaysia, Turkey, Bangladesh, Cambodia, and others) examining government subsidies and state-directed manufacturing overcapacity; (2) Forced labor investigations against 60+ countries examining labor practices in supply chains, building on existing UFLPA enforcement mechanisms.

The 16 economies under Section 301 excess capacity investigation are: China, Germany, France, Italy, Spain (EU), Japan, South Korea, Vietnam, India, Mexico, Taiwan, Thailand, Indonesia, Brazil, Malaysia, Turkey, Bangladesh, and Cambodia. China faces the most extensive review given its existing Section 301 tariff history. These investigations focus on whether foreign government subsidies and overcapacity policies in key manufacturing sectors constitute unfair trade practices under Section 301 of the Trade Act of 1974.

Investigations were initiated in March 2026. Public hearings were held on May 5, 2026. USTR formal determinations — the findings that authorize new tariff impositions — are expected before July 24, 2026, timed to coincide with the Section 122 tariff expiry. Determinations may come earlier for countries with the most advanced investigation records. Importers should monitor the Federal Register at federalregister.gov for USTR Section 301 notices.

Section 301 is preferred over Section 122 because it has no statutory rate cap, no expiration date, can target specific countries and products rather than applying broadly, and has a proven legal track record surviving WTO challenges. Section 122 expires in 150 days automatically; Section 301 remains in force until USTR affirmatively modifies it. The administration is using Section 301 as the durable replacement framework for post-Section 122 tariff authority.

Importers should take four key steps: (1) Confirm the country of origin for every SKU — Section 301 applies by country, not by importer preference; (2) Audit whether their products fall under any existing Section 301 tariff lists (Lists 1-4A for China goods); (3) Model rate scenarios using /calculate for different tariff levels once determinations are published; (4) Screen suppliers using /screen to identify whether they operate in countries under active investigation and verify compliance with country-of-origin documentation requirements.

Model Your H2 2026 Tariff Exposure

Section 301 determinations arrive before July 24. Know your rates now — not when the bill comes.

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