The United States has launched a probe into the trade practices of at least 16 economies to determine whether they burden or restrict US commerce. The investigation, announced by US Trade Representative Jamieson Greer, will be carried out under Section 301 of the Trade Act focused on alleged excess manufacturing capacity.
India was among the 16 economies listed in the Trump administration's announcement, along with Singapore, Switzerland, Norway, Indonesia, Malaysia, the European Union, Cambodia, Thailand, Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan, and others.
The US trade representative linked the move to prioritising American talent and strengthening supply chains, citing structural excess capacity and production in manufacturing sectors of some countries as challenging Trump's re-industrialisation efforts.
The US believes that some economies are manufacturing more products than they can consume domestically, eventually limiting domestic production and investment expansion for the US.
However, the announcement is also being viewed as the Trump administration's attempt to rebuild the tariff wall, struck down by the US Supreme Court recently.
A formal reaction from India on the trade practices investigation announced by the US is still awaited.
