US Opens Section 301 Trade Probes Targeting India and China

The United States has initiated Section 301 investigations into unfair trade practices by 16 major trading partners, including India and China, as the Trump administration seeks to reestablish tariff leverage following a U.S. Supreme Court ruling that struck down key elements of its earlier tariff program. Announced on March 11, 2026, by U.S. Trade Representative Jamieson Greer, the probes primarily target alleged structural excess industrial capacity in manufacturing sectors, which U.S. officials link to persistent trade surpluses and underutilized production that distorts global markets.

The investigation, conducted under Section 301 of the Trade Act of 1974, empowers the Office of the U.S. Trade Representative (USTR) to examine acts, policies, or practices deemed unjustifiable, unreasonable, discriminatory, or burdensome to U.S. commerce. If findings confirm unfair practices, remedies could include new tariffs, import restrictions, or measures affecting services and investments. Greer indicated that potential tariffs could be imposed against key targets such as China, the European Union, India, Japan, South Korea, and Mexico by summer 2026, with the process accelerated to align with statutory timelines.

The 16 entities under scrutiny encompass a broad range of economies exhibiting large bilateral trade surpluses with the U.S. or signs of overcapacity. These include the European Union, China, Mexico, Japan, India, South Korea, Taiwan, Vietnam, Thailand, Malaysia, Cambodia, Singapore, Indonesia, Bangladesh, Switzerland, and Norway. Notably absent from the list is Canada, the United States' second-largest trading partner. Data highlighted by the USTR shows significant U.S. goods trade deficits in 2025 with several of these partners, such as the EU at approximately $219 billion, China at $202 billion, and India at $58 billion, underscoring the focus on persistent imbalances.

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This move follows the Supreme Court's February 2026 decision invalidating broad tariffs imposed under emergency economic powers, prompting the administration to pivot to alternative legal authorities like Section 301 to sustain its "America First" trade agenda. The probes also address related concerns, including forced labor in supply chains (with a separate investigation covering over 60 countries) and other issues like digital barriers or discriminatory practices against U.S. firms. Public comments will be accepted starting March 17, with a hearing scheduled for May 5, and consultations with affected partners planned during the review period.

Industry observers note that the investigations could heighten global trade tensions, particularly with major exporters like China and India, whose manufacturing sectors face scrutiny for overproduction detached from market demand. The USTR has emphasized evidence-based findings and country-specific analysis, aiming to conclude key aspects before temporary measures expire. Without swift resolutions or negotiated outcomes, the probes risk escalating into renewed tariff battles, affecting supply chains, consumer prices, and bilateral economic relations across multiple continents.

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