US Vice-President JD Vance and Prime Minister Modi  Pic: PIB
Industry and Trade

Tariff pressure returns: India among countries under US trade probe

Countries named in the investigation include India, China, Japan, South Korea, Mexico and members of the European Union

Dhanam News Desk

The Trump administration has launched fresh trade investigations into alleged unfair practices by 16 major trading partners, including India, raising the possibility of new tariffs later this year.

The probes were announced by Jamieson Greer, who said the move aims to rebuild tariff pressure after a ruling by the US Supreme Court weakened parts of the Trump administration’s tariff programme.

According to a report by Reuters, the investigations will examine excess industrial capacity and forced labour practices across several economies.

Excess capacity probe

The first probe, launched under Section 301 of the Trade Act, will examine structural excess capacity in manufacturing sectors among major US trading partners.

Countries named in the investigation include India, China, Japan, South Korea, Mexico and members of the European Union. Other economies under scrutiny include Taiwan, Vietnam, Thailand, Malaysia, Cambodia, Singapore, Indonesia, Bangladesh, Switzerland and Norway.

Greer said the investigation will focus on economies showing signs of persistent trade surpluses or large unused production capacity.

“We have evidence that some economies exhibit structural excess capacity and production beyond market demand,” Greer said during a conference call with reporters.

Canada, the second-largest trading partner of the United States, was not included in the probe.

Tariff pressure returns

The Trump administration hopes to complete the investigations before temporary tariffs imposed in February expire in July.

After the US Supreme Court ruled that Trump’s earlier global tariffs were illegal under emergency powers legislation, the administration imposed temporary duties of 10 percent for 150 days under Section 122 of the Trade Act of 1974.

Greer said the US would continue to use tariff tools to counter what it sees as unfair trade practices. “President Trump is determined to deal with unfair trading practices, reduce the US trade deficit and protect American manufacturing,” he said.

(By arrangement with livemint.com)

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