Section 301 Tariffs Current Affairs for UPSC

India and the United States have made progress towards an interim bilateral trade agreement, but uncertainty over American tariffs, manufacturing overcapacity investigations, agricultural market access and Russian oil purchases continues to complicate negotiations. On 15 October 2026, India's Commerce Secretary said the first phase had been finalised and was undergoing legal drafting, although the agreement was not yet signed. The issue highlights Section 301 investigations, changes in US trade law following a Supreme Court judgment, forced-labour import restrictions, India's export competitiveness and the challenge of securing a stable, mutually beneficial trade relationship.

India has amended the Foreign Trade Policy 2023 through DGFT Notification No. 23/2026-27 to prohibit imports produced wholly or partly through forced labour. The amendment inserts Paragraph 2.20B, establishes an enquiry mechanism and adopts the International Labour Organization’s definition of forced labour. The decision comes while the United States Trade Representative is considering a 12.5% additional tariff on Indian goods under its Section 301 investigation.

US Trade Representative Jamieson Greer led a high-level American delegation to New Delhi (22–24 June 2026) for talks with Commerce Minister Piyush Goyal aimed at concluding an interim India–US Bilateral Trade Agreement (BTA). The visit comes at a decisive moment: the US Supreme Court has struck down the earlier emergency tariffs, the temporary 150-day Section 122 tariffs lapse on 24 July, and a fresh Section 301 tariff architecture is being shaped. This article explains the legal basis of US tariffs, the Supreme Court verdict, India's shrinking goods trade surplus with America, the FDI and rupee pressures, and India's key negotiating concerns.