<p>New Delhi: US President Donald Trump’s administration has launched an investigation into what it calls “unfair” trade policies of 16 leading economies, including India and China, a move that may lead to imposition of new tariffs.</p>.<p>The development comes less than a month after the US Supreme Court struck down Trump’s previous tariffs — imposed through a decades-old emergency law — that had rattled global markets. </p>.<p>Singalling a fresh round of tariff tussle, the United States Trade Representative (USTR) announced on Wednesday launch of investigations under Section 301 of the Trade Act of 1974.</p>.<p>The law allows the US trade representative to impose tariffs or other penalties on countries found to be engaged in unfair trade practices.</p>.India-US trade deal: Uncertainty over penal levy tied to Russia remains .<p>The move is seen as a new attempt by the Trump administration to restore tariff pressure on trade partners after the Supreme Court setback. “While its impact on India’s exports will be clear only after the investigation concludes, it seems the move is aimed at imposing a new tariff once the 150 days for the 10% global tariff expires,” said Pankaj Chadha, Chairman, Engineering Export Promotion Council (EEPC) India. “The latest USTR decision may also be intended to have leverage during trade negotiations with India,” Chadha said.</p>.<p>Last month, the US Supreme Court nullified the ‘reciprocal tariff’ levied by the Trump administration. In response to that, the US government came up with a 10% tariff on all its partners and also announced to raise it to 15%. “So, basically some way or another, the US appears hell-bent to maintain a certain level of tariff on most countries,” Chadha said. Sixteen leading economies which are facing the probe are: China, India, the European Union (EU), Japan, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, Korea, Vietnam, Taiwan, Bangladesh and Mexico.</p>.<p>The Trump administration has alleged that these countries use policies that disadvantage American producers, with almost all of them running significant goods trade surpluses with the United States. The probe covers sectors including steel, aluminum, automobiles, batteries, electronics, chemicals, machinery, semiconductors and solar modules.</p>.<p>The USTR claims to have identified several sectors in India where structural excess capacity or export surpluses may exist. These include solar modules, petrochemicals, steel, textiles, health-related goods, construction materials and automotive products. According to the US notice, India’s solar-module manufacturing capacity is already nearly three times domestic demand, suggesting the possibility of export-driven production surpluses. Similar concerns are raised about expanding capacity in petrochemicals and steel.</p>.<p>“The revival of Section 301 investigations signals that US trade policy is entering a new phase following the court ruling that curtailed Washington’s tariff powers,” said Global Trade Research Initiative (GTRI) founder Ajay Srivastava. “With its earlier tariff strategy effectively dismantled, the United States appears to be turning to trade investigations and targeted measures to maintain leverage in negotiations with trading partners,” he added.</p>
<p>New Delhi: US President Donald Trump’s administration has launched an investigation into what it calls “unfair” trade policies of 16 leading economies, including India and China, a move that may lead to imposition of new tariffs.</p>.<p>The development comes less than a month after the US Supreme Court struck down Trump’s previous tariffs — imposed through a decades-old emergency law — that had rattled global markets. </p>.<p>Singalling a fresh round of tariff tussle, the United States Trade Representative (USTR) announced on Wednesday launch of investigations under Section 301 of the Trade Act of 1974.</p>.<p>The law allows the US trade representative to impose tariffs or other penalties on countries found to be engaged in unfair trade practices.</p>.India-US trade deal: Uncertainty over penal levy tied to Russia remains .<p>The move is seen as a new attempt by the Trump administration to restore tariff pressure on trade partners after the Supreme Court setback. “While its impact on India’s exports will be clear only after the investigation concludes, it seems the move is aimed at imposing a new tariff once the 150 days for the 10% global tariff expires,” said Pankaj Chadha, Chairman, Engineering Export Promotion Council (EEPC) India. “The latest USTR decision may also be intended to have leverage during trade negotiations with India,” Chadha said.</p>.<p>Last month, the US Supreme Court nullified the ‘reciprocal tariff’ levied by the Trump administration. In response to that, the US government came up with a 10% tariff on all its partners and also announced to raise it to 15%. “So, basically some way or another, the US appears hell-bent to maintain a certain level of tariff on most countries,” Chadha said. Sixteen leading economies which are facing the probe are: China, India, the European Union (EU), Japan, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, Korea, Vietnam, Taiwan, Bangladesh and Mexico.</p>.<p>The Trump administration has alleged that these countries use policies that disadvantage American producers, with almost all of them running significant goods trade surpluses with the United States. The probe covers sectors including steel, aluminum, automobiles, batteries, electronics, chemicals, machinery, semiconductors and solar modules.</p>.<p>The USTR claims to have identified several sectors in India where structural excess capacity or export surpluses may exist. These include solar modules, petrochemicals, steel, textiles, health-related goods, construction materials and automotive products. According to the US notice, India’s solar-module manufacturing capacity is already nearly three times domestic demand, suggesting the possibility of export-driven production surpluses. Similar concerns are raised about expanding capacity in petrochemicals and steel.</p>.<p>“The revival of Section 301 investigations signals that US trade policy is entering a new phase following the court ruling that curtailed Washington’s tariff powers,” said Global Trade Research Initiative (GTRI) founder Ajay Srivastava. “With its earlier tariff strategy effectively dismantled, the United States appears to be turning to trade investigations and targeted measures to maintain leverage in negotiations with trading partners,” he added.</p>