The United States and 14 allied economies issued a joint declaration on October 7, 2026, committing to address structural excess capacity in global manufacturing. The agreement emerged from G20 trade minister discussions held in Milwaukee, Wisconsin. Signatories included Argentina, Australia, Canada, the European Union, France, Germany, India, Italy, Japan, South Korea, Mexico, Poland, Turkey, and the United Kingdom.
What it means
The joint statement targets overproduction in six specific sectors: automobiles, electric vehicles, batteries, chemicals, semiconductors, and solar panels. The participating nations stated they would examine the issue further and implement effective measures to mitigate the threat to domestic industries. U.S. Trade Representative Jamieson Greer warned that unchecked excess capacity will “cripple domestic industries, displace local production, and hinder our ability to raise the standard of living for workers and their families.”
The United States is currently conducting a separate investigation into excess capacity involving more than a dozen major trading partners. Several economies that signed the Milwaukee declaration are also subjects of this U.S. probe. While the timeline for the investigation’s conclusion remains unclear, officials anticipate it will lead to increased tariffs on the targeted nations. G20 members China, Brazil, Russia, and South Africa did not sign the agreement. The United States also spearheaded talks on preventing the weaponization of food supply chains, combating forced labor in goods, and reforming the most-favored-nation tariff system.
Key facts
- 14 economies joined the U.S. in the pledge against excess capacity.
- Sectors identified: autos, electric vehicles, batteries, chemicals, semiconductors, solar panels.
- Signatories include the EU, Japan, South Korea, Canada, Mexico, Australia, and others.
- China, Brazil, Russia, and South Africa did not sign the agreement.
- The U.S. is investigating more than a dozen major trading partners for excess capacity.
- The investigation is expected to result in higher tariffs on targeted economies.
Source: G20 trade ministers joint statement