Why Is US Probing India,15 Other Countries Over Unfair Trade Practices

The United States Government has initiated an investigation into the trade practices of at least 16 economies to determine whether they “burden or restrict” US commerce. The probe was announced by US Trade Representative Jamieson Greer, who said it would be carried out under Section 301 of the Trade Act, focusing on alleged excess manufacturing capacity.

Section 301 of the Trade Act of 1974 allows US trade representatives to impose tariffs or penalties on other countries, particularly those deemed to be engaging in unfair trade with the US.

On Wednesday, Jamieson Greer announced that a probe against 16 major trade partners would be launched under allegations of unfair trade practices. These partners are:

- Singapore

- Switzerland

- Norway

- Indonesia

- Malaysia

- European Union

- Cambodia

- Thailand

- Korea

- Vietnam

- Taiwan

- Bangladesh

- Mexico

- Japan

- India

Greer explained that the US would no longer allow countries “exporting problems with excess capacity and production” to undermine its industrial base. “Today’s investigations underscore President Trump’s commitment to restoring critical supply chains and creating good-paying jobs for American workers across our manufacturing sectors,” said Greer.

This probe mirrors the tariff disputes that unfolded before February 6, 2026, when the US–India trade deal was officially announced. Before that, President Trump had imposed 50% tariffs on India, at times even threatening to raise them to 500%. These threats stemmed from the trade imbalance between the US and India.

As of 2025, the US trade deficit stood at approximately $58.2 billion. India, meanwhile, maintained a surplus driven by exports in engineering, electronics, pharmaceuticals, and human resources. Taxes on US goods exported to India were consistently high and fluctuating, fueling trade tensions between the two nations. Much of this animosity was said to have been resolved after the US–India trade deal was announced on February 6. The tariffs Trump had threatened against several countries were later deemed unlawful by the Supreme Court.

One of the key reasons behind these disputes was the “America First” policy of President Trump and the nationalist stance of the current US government. In line with this, the new Section 301 probe has now been launched.

When announcing the probe, Greer linked the move to prioritizing American talent and strengthening supply chains. He argued that structural excess capacity and production in certain countries challenge Trump’s re-industrialization efforts. In simple terms, the US believes that some economies are producing more goods than they can consume domestically, thereby limiting US domestic production and investment expansion. “The United States will no longer sacrifice its industrial base to other countries that may be exporting their problems with excess capacity and production to us,” Greer stated.

Apart from India, countries such as Singapore, Vietnam, Thailand, Cambodia, Malaysia, Indonesia, Bangladesh, Switzerland, and Norway have also been threatened with probes. Officials have suggested that the new investigation could help re-establish credible tariff threats to keep trading partners engaged in negotiations.

Emphasizing the administration’s stance, Greer said Trump “will find a way to deal with unfair trading practices. He will find a way to get our trade deficit down. He will find a way to protect US manufacturing. We have a lot of tools to do it.”

Greer added that these measures had long been expected and should not surprise international partners. He urged countries to adhere to current agreements, though he did not guarantee that compliance would shield them from the new Section 301 probe or upcoming tariffs. However, a formal reaction from India to the trade practices investigation announced by the US is still awaited.

This article is written by Satvik AVP, an intern at Deccan Chronicle.