The United States Trade Representative (USTR) has launched a Section 301 investigation into South Africa and 59 other countries to determine whether they are engaging in “unfair trade”.

The investigation forms part of a broader push by the US government to “level the playing field” between its own local production and more affordable imports.

Trade representative Jamieson Greer said a key focus of the investigation will be on forced labour, but could also include many other unfair trade practices.

Notably, the investigation is not only looking at whether countries produce goods through forced labour, but also whether they allow these goods to enter their markets.

The investigations are an initial step to determine whether South Africa and other listed governments have taken sufficient steps to prohibit the importation of goods produced with forced labour.

“Despite the international consensus against forced labour, governments have failed to impose and effectively enforce measures banning goods produced with forced labour from entering their markets.”

“For too long, American workers and firms have been forced to compete against foreign producers who may have an artificial cost advantage gained from the scourge of forced labour,” he said.

Speaking to CNBC, Greer clarified that the investigation could be broader.

“If we find that countries have been engaging in unfair trading practices—like subsidies, excess capacity, allowing goods made with forced labour into their countries—we can quantify that harm to US commerce and then try to resolve that issue with that country,” he said.

Section 301 of the United States Trade Act of 1974 is designed to address unfair foreign practices affecting US commerce.

The section may be used to respond to “unjustifiable, unreasonable, or discriminatory foreign government practices” that burden or restrict US commerce, the department said.

Section 301(b) of the Trade Act enables the United States Trade Representative to self-initiate an investigation.

An investigation under Section 301(b) of the Trade Act examines whether the acts, policies, or practices of a foreign country are unreasonable or discriminatory and burden or restrict US commerce.

Upon initiation of an investigation, the United States Trade Representative must seek consultations with the economies whose acts, policies, or practices are under investigation.

The USTR has now requested consultations with the governments of these economies regarding these investigations, it said.

The trade representative will hold hearings on these investigations on April 28, 2026.

“If they can’t resolve it, then we can impose a tariff or fee. We’re trying to move very quickly. We’re trying to move in a matter of months,” he said.

On top of South Africa, the list of 60 countries includes major trade partners for the US, including Canada, China, Mexico, Taiwan, the UAE and the UK.

Tense Relations

While not targeting the country in isolation, the new investigation adds to the pressure on trade relations between the United States and South Africa.

The Trump Administration has taken an aggressive and combative stance towards South Africa since taking control of the White House in January 2025.

The country received one of the worst tariff regimes during President Donald Trump’s “reciprocal tariff” saga, and saw Washington boycott the G20 held in South Africa in November 2025.

There have also been attempts by US lawmakers to remove South Africa from the African Growth and Opportunity Act (AGOA), which was renewed in February and will remain in effect until 31 December 2026.

While the extension of AGOA keeps South Africa in the loop for now, the list of eligible countries can still be updated.

The Department of Trade, Industry and Competition (DTIC) has been trying to negotiate with its US counterpart to secure a beneficial trade deal since April 2025, but has been unsuccessful.

Major stumbling blocks in the negotiations were revealed this past week to be political and ideological barriers.

Speaking at the Biznews Conference last week, US Ambassador Leo Brent Bozell noted that the US had presented South Africa with ‘five asks’ a year ago to restore and rebuild relations.

These related to farm murders and rural crime, the ‘kill the boer’ chant, expropriation without compensation, BBBEE rules, and South Africa’s alignments in foreign affairs.

Bozell said Pretoria had not responded and added that Washington was losing patience.

“We put together five asks. We put them forward to the South African government. We’ve been waiting for almost a year for a response, and as I’ve made clear in meetings that I’ve had, we’re running out of patience,” he said.

“We believe that it becomes a statement by the South African government when it doesn’t want to respond to simple questions that we have.”

Tensions between the United States and South Africa have since intensified further, with the Department of International Relations and Cooperation issuing a démarche to Bozell for his comments. (Business Tech)

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