Washington, March 12 (IANS) The United States has launched a trade investigation into structural excess manufacturing capacity across 16 economies. The list includes major exporters such as China and the European Union, as well as manufacturing hubs in Asia and emerging economies such as India, Bangladesh, and Cambodia.

The USTR investigations will examine whether persistent trade surpluses and unused industrial capacity in these economies distort global markets and affect US manufacturing.

The economies under investigation are China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan, and India.

Together, they represent some of the world’s largest exporters. Their industries range from electronics and automobiles to textiles, chemicals, and energy.

China stands out as the biggest case. Its global goods trade surplus exceeded $1.2 trillion in 2025. That accounted for nearly 70 per cent of global goods trade surpluses.

China also recorded a $361 billion bilateral trade surplus with the United States in 2024. That was the largest among US trading partners.

Chinese exports span many sectors. These include machinery, electronics, automobiles, steel, chemicals, and consumer goods.

China’s industrial utilisation rate fell to 74.4 per cent in 2025. That suggests significant unused manufacturing capacity.

The European Union is the second major economic bloc cited in the investigation.

In 2024, the euro area recorded a $451 billion goods trade surplus. The EU also had a $147 billion bilateral surplus with the United States. Key export sectors include chemicals, machinery, and vehicles.

Within Europe, countries such as Germany and Ireland are noted for persistent trade surpluses. Some manufacturing sectors also show relatively low capacity utilisation.

Several Asian economies under investigation serve as major global manufacturing platforms.

Vietnam has one of the fastest-growing surpluses. Its global goods trade surplus reached $196 billion in 2025. Its bilateral surplus with the United States rose to $178 billion. Electronics and machinery exports drive much of this growth.

South Korea recorded a $52 billion global goods trade surplus in 2024. Taiwan posted a $73.3 billion surplus. Both economies rely heavily on electronics and semiconductor industries.

Smaller export-driven economies also appear in the investigation.

Singapore and Malaysia run strong surpluses in sectors such as semiconductors, electronics, petrochemicals and machinery.

Another group of economies is tied to specific industries.

Mexico recorded a $197 billion goods trade surplus with the United States in 2025. Automotive exports account for much of that figure.

Japan, despite running a global goods deficit of about $36 billion in 2024, had a $57 billion bilateral surplus with the United States. Vehicles dominate Japan’s exports to the US.

In Southeast Asia, Thailand exports automobiles and machinery. Bangladesh and Cambodia rely heavily on garments, footwear and related products.

India also appears in the investigation. It recorded a $58 billion bilateral trade surplus with the United States in 2025.

India’s surplus sectors include textiles, construction goods, health products and automotive manufacturing.

The report also highlights excess capacity in several Indian industries. In the solar sector, manufacturing capacity is nearly three times domestic demand. Additional excess capacity exists in petrochemicals and steel.

A smaller group of economies is mainly due to commodity-driven exports.

Norway and Indonesia run surpluses in fuels, metals, agricultural products, and seafood.

Switzerland is cited for a strong surplus driven by exports of refined gold, pharmaceuticals and machinery.

Despite their differences, the 16 economies share a common feature. US officials say their production capacity often exceeds domestic demand.

That can lead to persistent trade surpluses and unused industrial capacity.

US officials argue such imbalances can reshape global trade flows. They say excess production often ends up in export markets, including the United States.

--IANS

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