USTR Must Utilize Section 301 to Fight Industrial Overcapacity

For Immediate Release: May 7, 2026

Washington, D.C. - Industrial overcapacity has plagued American workers and manufacturers for decades, triggering plant closures and eroding our national security, Alliance for American Manufacturing (AAM) Senior Vice President for Government Affairs & Policy Scott Boos will testify before the Office of the United States Trade Representative (USTR) and other government agencies on Thursday.

His testimony is part of USTR's public hearings for its Section 301 investigation into 16 economies, including China. The office is charged with evaluating the impact of overcapacity across a wide range of industrial sectors, from steel and autos to ships and electronics.

Boos in his testimony underscores that steel overcapacity "remains one of the earliest and clearest indicators of structural excess capacity."

Global steel overcapacity is expected to rise to 721 million metric tons by 2027, around 290 mmt more than the combined steel produced by Organization for Economic Cooperation and Development (OECD) countries in 2024, according to the OECD Steel Outlook.

AAM's testimony also highlights overcapacity in autos, ships, glass, paper, tires, and cement, while calling on the Trump administration to utilize all available trade tools, including Section 301, to address structural excess production.

"Section 301 is well suited to address structural excess capacity,"Boos states. "When government intervention sustains production untethered from demand and externalizes surplus through exports or third country manufacturing, the burdens on U.S. commerce are predictable and persistent. Where such acts and practices are found to be unreasonable and actionable, we urge the adoption of robust remedies."

On Monday, AAM launched a campaign to stop Chinese autos and automakers from entering the U.S., urging passage of the Connected Vehicle Security Act.

Read AAM's prepared testimony here and full comments to the USTR here.

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