New Delhi

The office of the United States Trade Representative (USTR) has launched a fresh round of investigations under Section 301 of the Trade Act of 1974 targeting trade policies and industrial practices of 16 economies, including India and China.

The move follows a ruling by the Supreme Court of the United States that struck down sweeping tariffs introduced by the administration of Donald Trump. Subsequently, Trump announced a temporary 10 per cent tariff on imports from all countries for 150 days starting February 24.

The latest investigation marks a renewed escalation in Washington’s scrutiny of global trade practices.

What is the investigation about?

The USTR probe aims to examine whether trade and industrial policies adopted by several economies are “unreasonable or discriminatory” and harm American commerce.

The investigation will focus on sectors such as steel, aluminium, automobiles, batteries, electronics, chemicals, machinery, semiconductors and solar modules.

Which economies are being investigated?

The probe covers 15 countries and the 27-nation European Union. The countries are China, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, South Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan and India.

Why has the US initiated this probe?

After the US Supreme Court invalidated earlier tariffs imposed under the International Emergency Economic Powers Act (IEEPA), the Trump administration introduced temporary tariffs using other legal provisions.

A White House fact sheet stated that the president had directed the USTR to investigate “unreasonable and discriminatory acts, policies and practices” that restrict US commerce.

How does the investigation process work?

Under Section 301 of the Trade Act of 1974, the US government can investigate foreign trade practices suspected of harming American industry.

According to the Global Trade Research Initiative (GTRI), the probe will examine factors such as industrial subsidies, state-backed manufacturing expansion, activities of state-owned enterprises, market-access barriers, currency practices and suppressed domestic demand.

If the investigation confirms harmful practices, Washington could impose retaliatory measures such as additional tariffs, quotas or other trade restrictions.

Public consultations will form part of the process. Written submissions from companies, trade bodies and governments will open on March 17, while requests to participate in hearings must be submitted by April 15. Public hearings are scheduled from May 5 to May 8 at the United States International Trade Commission in Washington.

What could this mean for India?

According to GTRI founder Ajay Srivastava, the US notice identifies several sectors in India where export surpluses or excess manufacturing capacity may exist.

These sectors include solar modules, petrochemicals, steel, textiles, health-related goods, construction materials and automotive products.

The report notes that India’s solar-module manufacturing capacity is already nearly three times domestic demand, raising concerns about export-driven surpluses. Similar questions have been raised about expanding capacity in petrochemicals and steel.

However, the Federation of Indian Export Organisations (FIEO) said the probe appears largely aimed at addressing broader global concerns over manufacturing overcapacity.

FIEO Director General Ajay Sahai said India’s export growth is largely demand-driven and diversified, adding that there is no immediate cause for concern, though the situation will need to be monitored.

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What laws is the US using to impose tariffs?

The Trump administration has relied on multiple legal provisions to impose trade restrictions:

• International Emergency Economic Powers Act (1977): Invoked by Trump in February 2025 to impose tariffs, but later struck down by the US Supreme Court.
• Section 122 of the Trade Act of 1974: Used in February 2026 to impose a temporary 10 per cent tariff on imports from all countries for up to 150 days, with the option to raise it to 15 per cent.
• Section 232 of the Trade Expansion Act of 1962: Allows tariffs on national-security grounds and has been used for certain steel, aluminium and auto component imports.
• Section 301 of the Trade Act of 1974: Enables the US to respond to unfair foreign trade practices affecting American commerce.
• Section 302(b) of the Trade Act of 1974: Allows the USTR to initiate Section 301 investigations independently.

Experts say while Section 301 remains a powerful trade enforcement tool, it involves a detailed investigative process and must demonstrate specific harm to US commerce before retaliatory measures can be imposed.