In America, Donald Trump administration has started a new investigation against 16 major trading partner countries including India, China and Bangladesh. This investigation is being conducted under America’s Trade Act Section 301 (Trade Act 1974). Under this law, America can increase tariff i.e. import tax on any country. This step has been taken when last month the US Supreme Court had canceled the tariffs imposed by the Trump administration, calling them illegal. After this, America is again trying to put pressure through a new investigation.

US Trade Representative Jamieson Greer said that if irregularities are found in the investigation, new tariffs could be imposed on many countries. The countries that may be affected include China, European Union, India, Japan, South Korea and Mexico. The purpose of this investigation is to look at those countries which have more production capacity or which continuously sell goods to America with large trade surpluses. America says that in such circumstances the domestic industry may suffer losses.

Which other countries were included?

Other countries included in this investigation include Taiwan, Vietnam, Thailand, Malaysia, Cambodia, Singapore, Indonesia, Bangladesh, Switzerland and Norway. Interestingly, America’s second largest trading partner Canada is not included in this list. The US has also said that it is going to launch a separate investigation, which will look at the possibility of banning the import of products that are made with forced labour. This investigation can cover more than 60 countries.

What action did America take against China?

Even before this, America had taken action on solar panels and other products coming from Xinjiang region of China. This step was taken under the Uyghur Forced Labor Protection Act, which was recognized during the regime of former US President Joe Biden. America alleges that people of the Uyghur Muslim community are forced to work in the Xinjiang region of China. However, China has been denying these allegations. The Trump administration has set a fast deadline for this investigation. Suggestions will be sought from the public till April 15 and a public hearing will be held around May 5. After this, there is a plan to complete the investigation by July. This step is considered to be part of the larger goal of the Trump administration, in which America wants to reduce trade deficit and strengthen domestic manufacturing.

What is section 301?

Section 301 is an important part of the US trade law Trade Act of 1974. It is used when America feels that another country is adopting wrong or unfair methods in trade. Under this law, America can start an investigation against that country and impose tariffs or other trade restrictions if necessary. According to this law, the Office of the United States Trade Representative (USTR), the trade department of the US government, investigates the trade policies of a country.

It is often seen that whenever a trade deal is finalized, the head of state of another country either comes to India and talks or PM Modi goes to that country and participates in the discussion. In such a situation, the question arises that if PM Modi does not even set foot in any country, can any trade deal be finalized? Let us know what is its process?

How is the deal done without the presence of PM?

Suppose if a trade deal is made between India and any country, then it is not a sudden decision, but is the result of long-running technical and diplomatic discussions. In such cases, it is not necessary for the Prime Minister or the President to be personally present every time. The real work is done by authorized representatives and officials of governments, while top leaders provide political approval and direction.

Who talks on behalf of India in that country?

With whichever country a trade deal is signed, the Indian embassy and commercial wing present there handles such negotiations. The officers posted in this wing represent the business interests of India. These people remain in direct contact with the administration of that country, its trade representatives and related agencies. Issues like tariffs, import-export rules and market access are discussed at these levels.

Who signs the deal?

This type of trade deal is not completed with the signature of any one person. Usually such a deal is in the form of a framework or agreement, which is accepted by the authorized officials of both the countries. From the Indian side, the Ministry of Commerce, Ministry of External Affairs and senior trade representatives of that country finalize the documents.

What is the role of the Prime Minister?

Whatever the issue, the role of the Prime Minister of the country is strategic and political. During any trade deal, it is kept in mind that there is no compromise with the interests of the country, but it remains ready to cooperate with the other country.

When is a deal considered final?

It is important to understand that the agreement of any trade deal is very broad. Many conditions, such as reducing non-tariff barriers or future purchase figures, may be implemented in a phased manner. This means that in future also the officials of both the countries will sit and decide its detailed rules. All these things depend on the final legal provisions of the deal.

Also read: Can’t America impose additional tariff after trade deal, know what are its rules?

Trump 100% Tariffs on Branded Pharma Drgus: US President Donald Trump is taking one after the other, which is causing a stir worldwide. Now he has announced to put 100 percent tariff on all types of branded and patented medicines. This tariff will remain in force until the drug -making companies set up manufacturing units within the US.

This move of President Trump has come at a time when intense investigation has been done under Section 232 of the Trade Expensing Act 1962 in the US. This section gives the President the right to increase the tariff by making the subject of national security.

Legal challenge

This announcement of tariffs under section 232 has been made when the right of President Trump over the Tariff is being heard in the US Supreme Court under the International Emergency Economic Powers Act. If there is a decision against Trump from there, then America may have to withdraw recipes on all countries.

How much impact on India’s pharma?

America is the largest market for Indian drug exports. It is about one-third of India’s total drug exports. Here India mainly exports cheap generic drugs, which cost much lower than branded drugs. During the financial year 2025, India exported medicines worth about $ 10.5 billion to the US.

In such a situation, when Trump has applied 100 percent tariff only on branded and patent medicines, its effect on Indian generic medicines is likely to be limited. However, market experts say that this step may have a negative impact on investors’s trust and market notion.

Which big companies are affected?

Zydus Life: 49% of the total income comes from America.

Dr. Reddy’s: About 47% income is from the US.

Aurobindo Pharma: More than 44% income comes from the US.

Experts believe that investors and companies will now look at whether generic drugs will also be brought under tariffs in future. If this happens, India’s pharmaceutical export market may suffer a direct shock.

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