Fresh attempt to impose tariffs? US launches trade probe into India, 15 other economies

India is among 16 economies that have come under scrutiny after the United States launched investigations into alleged unfair trade and manufacturing practices that Washington says may be hurting American industry.

The Office of the United States Trade Representative (USTR) on Wednesday announced the initiation of investigations under Section 301(b) of the Trade Act of 1974 into the acts, policies and practices of several economies linked to “structural excess capacity and production” in manufacturing sectors.

The probe will examine the practices of India, China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, South Korea, Vietnam, Taiwan, Bangladesh, Mexico and Japan.

The investigations will determine whether these economies’ policies are “unreasonable or discriminatory” and whether they burden or restrict US commerce.

“The United States will no longer sacrifice its industrial base to other countries that may be exporting their problems with excess capacity and production to us,” US Trade Representative Jamieson Greer said in a statement.

Greer argued that overproduction in several countries is displacing US production or preventing new investment in American factories.

Fresh attempt to impose tariffs

The probe could eventually lead to the imposition of fresh tariffs on imports if Washington concludes that the practices of the economies under investigation harm US commerce.

The move comes as the Donald Trump administration looks for new ways to impose tariffs after the US Supreme Court last month struck down the president’s sweeping global “reciprocal tariffs”.

In a 6–3 ruling, the court said Trump had exceeded his authority by imposing the tariffs without clear authorisation from Congress, rejecting the administration’s argument that emergency powers allowed such action.

A US trade court subsequently directed authorities to begin refunding billions of dollars in tariffs collected from importers under the disputed measures.

What’s next?

The investigations were initiated under Section 301 of the Trade Act of 1974, a law that allows Washington to probe and respond to foreign government practices that it considers unfair to US commerce.

Under the process, the USTR will seek consultations with the governments of the economies under investigation, including India.

A public docket for comments will open on March 17 and written submissions must be filed by April 15.

The USTR will hold hearings on the matter starting May 5.