India evaluating US Section 301 probe against 16 trading partners

New Delhi: India is evaluating the US announcement to initiate investigations under Section 301 against 16 trading partners, and will respond accordingly, an official said on Friday.

The United States Trade Representative (USTR) on March 11 announced that it has initiated investigations against its 16 trading partners, including India, China, Japan, and the EU, to look into and address unfair foreign practices such as forced labour and overcapacity that are adversely affecting American manufacturing.

The probe covers sectors, including steel, aluminum, automobiles, batteries, electronics, chemicals, machinery, semiconductors, and solar modules.

The 16 trading partners China, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, South Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan, India, and the 27-nation EU bloc.

“We are studying what is there in their note. We are looking at it from all perspectives. Both from the legal perspective as well as the economic angle which is being mentioned there. India is evaluating the documents,” the official said.

The move comes at a time when the US Supreme Court has ruled against the Trump tariffs. After that, US President Donald Trump had stated that the US has other alternatives to impose such levies.

Through this, the US is looking at rebuilding tariff pressure on its trading partners.

Following the court’s order, the US has imposed 10 per cent tariff on all countries for 150 days from February 24.

The probe will examine whether policies such as industrial subsidies, state-supported manufacturing expansion, activities of state-owned enterprises, market-access barriers, currency practices or suppressed domestic demand have contributed to global manufacturing overcapacity that burdens US commerce.

If such practices are confirmed, Washington may impose retaliatory trade measures, including additional tariffs, quantitative restrictions or other trade barriers.