In March 2026, the Workplace of the US Commerce Consultant (USTR) launched two new probes below Part 301 of the Commerce Act of 1974.
The primary, introduced on March 11, examines whether or not industrial insurance policies in 16 economies have created extra manufacturing capability that harms U.S. industries. The second, introduced on March 12, investigates whether or not about 60 economies have failed to forestall items made with pressured labour from getting into international commerce. India is known as in each probes.
“With earlier tariff methods constrained by authorized rulings, Washington seems to be turning to investigations to rebuild leverage in commerce negotiations. The transfer can also be supposed to discourage international locations from strolling away from commerce offers negotiated with the Trump administration after these agreements misplaced worth following the February 20 U.S. Supreme Courtroom ruling,” stated GTRI in its assertion.
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The investigation comes after the US Supreme Courtroom dominated on February 20 that Trump’s international tariffs imposed below a nationwide emergencies legislation had been unlawful. Following the ruling, Trump imposed a brief 10% tariff for 150 days below Part 122 of the Commerce Act of 1974.
What are key dangers for India?
Whereas India prohibits forced-labour below the Bonded Labour System (Abolition) Act, 1976, it might nonetheless face investigations as a result of many Indian export industries depend on imported intermediate inputs from China.”As an example, India’s photo voltaic panel exports to the U.S. usually depend on imported polysilicon or photo voltaic cells sourced from Chinese language provide chains, a few of which have confronted scrutiny over alleged pressured labour in Xinjiang,” stated the GTRI report.
“Equally, electronics manufacturing in India relies upon closely on Chinese language elements, cables and sub-assemblies, which might face investigation in the event that they originate from areas linked to labour-transfer programmes.
Within the textile and garment sector, Indian producers steadily use Chinese language yarns and materials, which can develop into topic to tighter traceability guidelines if linked to cotton produced in Xinjiang,” the report added.
Flagging additional dangers for Indian exporters, GTRI stated, “As a result of the US is a serious marketplace for photo voltaic tools, electronics and clothes, Indian exporters could face greater compliance prices and stricter documentation necessities as U.S. authorities demand detailed proof of the origin of inputs used throughout provide chains.”
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