USTR initiates Section 301 investigations over excess global capacity: Potential Implications for India

On March 11, 2026, the U.S. Trade Representative initiated Section 301 investigations, against various countries including India, examining whether state policies contributing to excess manufacturing capacity distort global trade and burden U.S. commerce.

The move follows the U.S. Supreme Court decision striking down recent reciprocal tariffs under IEEPA and may signal a shift toward Section 301 as a key trade policy tool.

Several sectors relevant to India’s exports to the U.S. are referenced in the initiation notice, including textiles, autos, construction goods, petrochemicals and steel.

While no measures have been imposed yet, the investigations could ultimately lead to additional tariffs or other trade restrictions.

We summarize the investigation process, timelines, and possible implications for Indian exporters in our update.

Read the detailed update here