India among 16 economies under scrutiny as Trump administration launches probe into unfair trade, manufacturing practices

The administration of Donald Trump on Wednesday launched a new trade investigation into overseas manufacturing practices, shortly after the Supreme Court of the United States struck down the president’s earlier use of tariffs declared under an economic emergency. The probe targets 16 economies, including India.

In an announcement by Jamieson Greer, the Office of the United States Trade Representative said investigations will begin under Section 301 of the Trade Act of 1974, a provision that could lead to new import tariffs. Economies under scrutiny include major US trading partners such as China, the European Union, Mexico, India, Japan, South Korea and Taiwan.

Other countries listed in the probe include Switzerland, Norway, Indonesia, Singapore, Thailand, Malaysia, Cambodia, Vietnam and Bangladesh. “Our view is that key trading partners have developed production capacity that is really untethered from the market incentives of domestic and global demand,” Greer said during a briefing with reporters, according to Bloomberg.

In an official statement, Greer said the US would no longer allow its industrial base to weaken because of excess production abroad. “Today’s investigations underscore President Trump’s commitment to reshore critical supply chains and create good-paying jobs for American workers across our manufacturing sectors,” he said.

He added that the administration’s reindustrialisation push continues to face challenges due to what it described as “structural excess capacity” in foreign economies. According to the statement, many trading partners produce more goods than they can consume domestically, a situation that can displace US production or discourage investment in American manufacturing.

India–US trade ties

India and the United States recently announced a bilateral trade deal under which Washington reduced tariffs on New Delhi from 50% to 18%. The move came after the White House said it received assurances from India that it would scale back purchases of Russian oil.

India had previously faced 25% tariffs imposed during Trump’s so-called “Liberation Day” trade measures. The US president later added another 25% tariff on India, citing its continued purchases of Russian oil during the Russo‑Ukrainian War.

While few details of the new trade arrangement have been made public, both governments have described the agreement as “historic.”