Section 301 of the Trade Act of 1974 allows the US to impose duties to address unfair trade practices by exporters from other countries. On March 12, the USTR launched a Section 301 probe covering 60 economies, including India and China. The investigation will assess whether policies and practices related to the failure to ban imports of goods produced using forced labour are unreasonable or discriminatory, and whether they restrict US commerce.
The probes also cite excess capacity—across 16 economies including India—and forced labour concerns as detrimental to US trade interests. The investigation into excess capacity covers sectors such as petrochemicals and textiles.India has rejected allegations of excess capacity and forced labour, stating that such concerns should be addressed through trade negotiations rather than unilateral measures. It has also said it is willing to engage constructively with the US, including through consultations, and described its $42 billion trade surplus with the US in 2025 as a “macroeconomic phenomenon” driven by multiple factors.
Linscott expressed hope that “important progress” would be made in Washington this week to conclude an interim agreement. He added that such an agreement could pave the way for a broader bilateral trade deal, benefiting both countries as they deepen economic and strategic ties.
