USTR opens hearings on South Korea, 15 others in manufacturing capacity probe

The U.S. Trade Representative said Monday it will hold public hearings this week on Section 301 trade investigations into South Korea and 15 other countries, examining whether structural excess capacity and production in their manufacturing sectors constitute unfair trade practices.

The four-day hearings at the U.S. International Trade Commission represent the administration's push to rebuild tariff authority after the Supreme Court struck down its earlier "reciprocal" tariff regime in February, and could produce new trade measures affecting South Korean petrochemical and steel exports.

The USTR announced it would convene hearings at the U.S. International Trade Commission from Tuesday through Friday on investigations launched in March 2026, The Korea Times reported Monday. The probe covers 16 countries — including China, Japan and South Korea — over what the office described as "structural excess capacity and production in manufacturing sectors."

The proceedings unfold under Section 301 of the 1974 Trade Act, which grants the USTR authority to investigate unfair foreign trade practices and recommend tariffs or other remedies on a country-by-country basis. The administration has framed the investigations as a way to establish new trade leverage after the Supreme Court's February ruling that invalidated its earlier country-specific "reciprocal" tariff regime, according to The Korea Times.

South Korea plans to tell investigators that its economy operates on market principles and that any industry restructuring has been conducted voluntarily, The Korea Times reported. Petrochemicals and steel are among the sectors receiving the closest scrutiny in the South Korean case.

In addition to the capacity probe, the USTR is conducting separate forced labor investigations covering 60 economies — a parallel track that could compound pressure on countries already named in the manufacturing capacity inquiry.

The four days of hearings mark a key procedural step; the outcome will determine whether the administration moves forward with formal tariff action against South Korea and the 15 other countries under investigation.