Structural Excess Capacity
US initiates unfair trade practice probe against India, 15 other nations
This story was originally published at 13:41 IST on 12 March 2026
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NEW DELHI – The Office of the US Trade Representative has issued an investigation notice against India and 15 other nations alleging unfair trade practice relating to structural excess capacity and production in manufacturing sectors including steel, aluminum, automobiles, batteries, electronics, chemicals, machinery, semiconductors and solar modules. The other countries are China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, South Korea, Vietnam, Taiwan, Bangladesh, Mexico, and Japan.
"Evidence suggests the solar module sector is plagued by excess capacity, including that India's current module manufacturing is nearly triple annual domestic demand. India also has created significant excess capacity in petrochemicals, steel, and other industries," the US administration said in its notice. The investigation, which can lead to fresh tariffs, comes after the US Supreme Court struck down US President Donald Trump's reciprocal tariffs.
Under Section 301 of the US Trade Act of 1974, the Trump administration will probe whether foreign trade practices are unreasonable or discriminatory and harm American commerce. The investigations will examine if policies such as industrial subsidies, state-supported manufacturing expansion, activities of state-owned enterprises, market-access barriers, currency practices or suppressed domestic demand have contributed to global manufacturing overcapacity that burdens US commerce.
After the US Supreme Court struck down reciprocal tariffs last month, Trump imposed a blanket 10% tariff on goods imported from all nations. He also said that he aims to raise this tariff level to 15% in the future. End
US$1 = INR 92.21
Reported by Krity Ambey
Edited by Ashish Shirke
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