Section 301
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Countries covered: European Union, China, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, South Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan and India.
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Assessment criteria: Bilateral trade surplus with the United States, underused or unused industrial capacity and production levels above demand.
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European Union context:
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Goods trade surplus of $451 billion in 2024, equivalent to 2.3% of euro area GDP;
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Bilateral surplus in goods and services with the US of $147 billion in 2024;
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Overall surplus sustained by sectors such as chemicals, machinery and vehicles, despite high energy prices and regulatory constraints.
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Two EU countries mentioned:
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Germany: which has maintained a consistent trade surplus for more than a decade, with output above domestic absorption.
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Ireland: recorded a surplus of $97 billion in 2024 (15.9% of GDP); industrial capacity utilization in the first quarter of 2026 was 72.7%, indicating low activity in the manufacturing sector.
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Next steps: a second Section 301 investigation, focused on forced labor, may be announced soon. The focus will be on whether the countries included have implemented legislation prohibiting the import of products made with forced labor, as provided for in Section 307 of the Tariff Act of 1930.
AmCham EU statement:
Statement on Section 301 investigations
On Wednesday, 11 March, the United States Trade Representative launched Section 301 investigations into structural production overcapacity against a range of economies, including the European Union. We understand that this decision is part of a larger attempt to stabilise the US tariff system in the wake of the Supreme Court ruling striking down the International Emergency Economic Powers Act (IEEPA) tariffs.
The American Chamber of Commerce to the European Union (AmCham EU) is concerned about the continued uncertainty of the current trade environment. Companies still lack clarity over future tariff rates in both the short- and long-term. We continue to oppose broad-based tariffs as they raise costs for businesses and consumers and disrupt supply chains.
With potential measures against the EU under consideration, AmCham EU calls on the EU and the US to avoid escalation in the trade dispute. The priority must be to restore stability and predictability in transatlantic trade. The deal struck in the summer is not a perfect solution, but it offers the most realistic path forward given political priorities on both sides. We look to the parties to honour their commitments under the EU-US Framework Agreement.
The US Administration rightfully identifies overcapacity as a critical issue in the global economy which also affects the European market. We see the EU as part of the solution, rather than the problem. The EU and the US must work together to tackle the real issue at hand: unfair trading practices from non-market economies.
AmCham Portugal
Founded in 1951, AmCham Portugal is a private, independent, non-profit business association — the largest bilateral association between Portugal and the United States.
