Winning Bizness Desk

Mumbai. The United States is preparing to reimpose tariffs on India, China and several other trading partners after launching a fresh investigation under Section 301 of the Trade Act. The Donald Trump administration has begun examining trade practices of 16 major partners, saying unfair trade behaviour could attract new duties as early as this summer. The move comes weeks after the US Supreme Court declared earlier global tariffs imposed by the administration illegal, forcing officials to explore alternative legal routes to sustain trade pressure on partner countries.

Probe targets 16 key US trading partners

According to the Office of the US Trade Representative, investigations have been opened against 16 countries and economic blocs that maintain significant trade ties with the United States. These include India, China, the European Union, Japan, South Korea, Mexico, Vietnam, Taiwan, Thailand, Malaysia, Cambodia, Singapore, Indonesia, Bangladesh, Switzerland and Norway.

The administration believes some of these economies may be benefiting from trade practices that harm American industries. The new probe is intended to determine whether any country is engaging in policies that distort trade or damage US manufacturers.

Key countries under investigation include:

• India
• China
• European Union
• Japan and South Korea
• Mexico and Vietnam
• Taiwan, Thailand, Malaysia and others

If evidence of unfair practices emerges, Washington could impose additional tariffs or trade restrictions on goods coming from these markets.

Court ruling triggers fresh legal strategy

The latest investigation follows a major legal setback for the Trump administration. On February 20, the US Supreme Court ruled that global tariffs imposed earlier by President Donald Trump were unlawful. In response, the administration temporarily introduced a 10 percent tariff for 150 days while searching for legal mechanisms to maintain trade pressure.

Officials have now turned to Section 301 of the Trade Act of 1974, which allows the United States to act unilaterally against countries that adopt unfair trade practices. US Trade Representative Jamieson Greer said the administration intends to keep tariff threats alive so that trading partners return to negotiations.

Focus on excess production and dumping

The central focus of the investigation is whether countries are producing far more goods than their domestic markets can absorb and then dumping the surplus in the US market at artificially low prices. American authorities argue that such practices can damage domestic industries.

Officials explain the issue with a simple example:

• A factory capable of producing 100 pairs of shoes annually
• Domestic demand in that country remains only around 20 pairs
• Government subsidies help the factory keep producing full capacity
• The remaining 80 pairs are exported cheaply abroad

When these low-priced goods reach American markets, domestic manufacturers struggle to compete. Washington suspects similar patterns in several industries across multiple countries.

India’s trade surplus draws attention

India remains one of the countries under scrutiny despite a decline in its trade surplus with the United States. Official data shows that India recorded a goods trade surplus of 58,216 million dollars with the US in 2024. The figure fell to about 45,801 million dollars in 2025, but it still remains significant.

If the investigation concludes that India’s policies involve unfair trade practices, Washington may impose new tariffs on Indian exports. Such a move could affect sectors that depend heavily on the American market.

Trade watchers say industries such as textiles, electronics and engineering goods could face the greatest exposure if tariff actions are eventually announced.

Forced labour imports also under review

Apart from the excess production investigation, the United States is launching another probe focused on imports made using forced labour. Officials said the aim is to ban products suspected of being manufactured through coercive labour practices.

The US has previously taken similar action against products from China’s Xinjiang region under the Uyghur Forced Labor Protection Act, targeting solar panels and several other goods. Authorities say comparable restrictions could now extend to imports from other countries as well.

The timeline for the investigation includes public feedback until April 15, followed by hearings around May 5. The administration hopes to finalise findings and possible tariff proposals before temporary tariffs expire in July.

For exporters and importers, the development carries immediate implications:

• Monitor US policy changes closely in coming months
• Trade consultations and hearings may influence final decisions
• Price shifts possible in textiles, electronics and engineering goods

US officials maintain that President Donald Trump remains committed to tariffs as a tool to reduce trade deficits and protect American manufacturing. The administration has also warned trading partners to strictly follow existing trade agreements or face potential economic consequences.