US Joins 14 Economies In Pressing Over Production Capacity Issue, Chemicals Among Six Key Sectors

October 8, 2026 — The United States and 14 trade partners issued a joint statement pledging to jointly address the issue of global overcapacity and identified six key focus areas: automobiles, electric vehicles, batteries, semiconductors, solar panels, and chemicals. However, some signatories are themselves facing U.S. investigations into their own overcapacity, and Washington has not halted actions that could lead to additional tariffs. China did not participate in the joint statement.

According to Bloomberg, the United States and 14 other economies issued a joint statement following the recent G20 Trade Ministers’ Meeting in Milwaukee, pledging to strengthen cooperation to address structural overcapacity and production issues in specific industries.

The statement notes that the international community increasingly recognizes that structural overcapacity poses a fundamental challenge to the global economy and individual economies. The signatories welcome the United States’ attention to the issue of overcapacity and commit to further studying and taking effective actions to address the related challenges.

According to the joint statement, the six key sectors include automobiles, electric vehicles, batteries, chemicals, semiconductors, and solar panels—areas that are also the most fiercely competitive in global manufacturing. Among these, electric vehicles, batteries, and solar panels have recently become focal points of trade friction among major economies.

China, Brazil, and two other countries have not signed.

The United States has long been concerned that certain economies, through industry subsidies and expanded production scales, have caused global market oversupply and exerted price competition pressure on manufacturers in other countries.

Excluding the United States, the 14 economies participating in the joint statement are: Argentina, Australia, Canada, the European Union, France, Germany, India, Italy, Japan, South Korea, Mexico, Poland, Turkey, and the United Kingdom.

Among the G20 member states, China, Brazil, Russia, and South Africa did not sign the statement.