Trump Administration Launches Sweeping ‘Section 301’ Trade Probes into India, China, and EU

For countries like India, this investigation introduces a new layer of uncertainty in trade relations as Washington explores multiple legal avenues to revive its global tariff strategy.

RMN News Trade Desk
New Delhi | March 12, 2026

WASHINGTON D.C. — The Donald Trump administration has launched aggressive trade investigations into 16 major trading partners, including India, China, and the European Union, alleging that their industrial policies have created excess manufacturing capacity that harms American producers. Announced on Wednesday by US Trade Representative Jamieson Greer, the move utilizes Section 301 of the Trade Act of 1974, a powerful tool that allows the US to impose unilateral trade measures without approval from the World Trade Organization (WTO).

Targeting Excess Capacity and Forced Labor

The administration has initiated two distinct probes. The first focuses on structural excess capacity, examining economies where manufacturing output appears disconnected from actual market demand. Indicators under review include persistent trade surpluses, underutilized industrial capacity, and state-backed policies—such as subsidies, suppressed wages, and subsidized lending—that may give foreign manufacturers an unfair advantage.

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The USTR specifically highlighted concerns in the automobile and advanced manufacturing sectors. For example, the probe cited Chinese electric vehicle giant BYD for aggressively expanding production overseas despite domestic capacity already exceeding demand.

A second investigation aims to ban imports produced with forced labor. This probe could eventually cover more than 60 countries, potentially expanding restrictions similar to those currently imposed on goods from China’s Xinjiang region. Greer emphasized that the US seeks to encourage trading partners to adopt similar enforcement measures against forced labor.

Bypassing Legal Hurdles

This strategy follows a significant legal setback for the administration. The Supreme Court of the United States recently struck down Trump’s previous tariff program, ruling it unconstitutional to impose tariffs by declaring an economic emergency.

“The policy remains the same, the tools may change depending on, you know, the vagaries of courts and other things,” Greer stated, noting that the ultimate goal is to protect American jobs.

Affected Nations and Timeline

The 16 trading partners subject to these investigations include:

• Asia: India, China, Japan, South Korea, Taiwan, Vietnam, Thailand, Malaysia, Cambodia, Singapore, Indonesia, and Bangladesh.
• Europe: The European Union, Switzerland, and Norway.
• North America: Mexico.

The USTR has set April 15, 2026, as the deadline for public comments, with a public hearing scheduled for early May. Officials aim to complete the investigation and recommend potential tariff measures before existing temporary tariffs expire in July.

For countries like India, this investigation introduces a new layer of uncertainty in trade relations as Washington explores multiple legal avenues to revive its global tariff strategy.