G20 Trade Ministers create sectoral platforms to tackle excess capacity in autos, semiconductors and other key industries

Key facts

• G20 Trade Ministers met in Milwaukee, Wisconsin on September 30 and October 1, 2026, and agreed to create dedicated sectoral platforms to examine and address structural excess capacity and production in key sectors.
• The sectors covered are autos and electric vehicles, batteries, chemicals, foundational semiconductors, and solar panels.
• Trade Ministers of Argentina, Australia, Canada, the European Union, France, Germany, India, Italy, Japan, the Republic of Korea, Mexico, Poland, Türkiye, the United Kingdom, and the United States welcomed the US G20 Presidency's focus on the issue.
• On March 11, 2026, the USTR launched a Section 301 investigation into structural excess capacity across 16 economies; India, the European Union, Japan, Mexico and South Korea are both subjects of that investigation and signatories of the new declaration.
• The deadline for final Section 301 findings on excess capacity is March 11, 2027.
• According to the Global Trade Research Institute (GTRI), the declaration names no target country though China appears to be the principal implied focus, and announces no tariffs, quotas or sanctions.
• For India, the USTR cited expanding capacity and potential export-driven oversupply in solar modules, steel and petrochemicals, noting solar-module capacity was nearly three times annual domestic demand.