International Relations GS 2 In the news 11 times

Section 301 of the US Trade Act of 1974

Section 301 of the Trade Act of 1974 authorises the US Trade Representative (USTR) to investigate and take action against foreign trade practices that are "unjustifiable" or "unreasonable" and burden or restrict US commerce. It has been the primary US tool for trade enforcement outside the WTO framework and has been used extensively in the current administration's trade policy.

Key details

Section 301 empowers the USTR to impose retaliatory tariffs, restrict imports, or negotiate to eliminate the foreign practice
The USTR launched Section 301 investigations into digital services taxes of multiple countries (India, France, UK, Italy, Spain, Austria, Turkey) in 2020
For India, the investigation focused on the 2% Equalisation Levy on e-commerce, finding it was "unreasonable or discriminatory" and "burdened or restricted US commerce"
The US proposed up to 25% retaliatory tariffs on approximately $119 million of Indian imports but suspended action pending the OECD process
Section 301 was also the legal authority for US tariffs on Chinese goods (2018-present)
WTO compatibility of Section 301 is disputed; the WTO DSB ruled in 2000 (DS152) that the US must exhaust WTO procedures before imposing Section 301 actions, but the US has continued to use it unilaterally

In the news

● Tracked since February 11, 2026 · last seen June 23, 2026 · updates as the daily brief publishes

23 Jun '26

India-US trade talks gather pace as tariff clock ticks

International Relations

08 Jun '26

India, US trade pact can be finalised after conclusion of Sec 301 investigations: Official

International Relations

07 Jun '26

India must not let US Section 301 threats push it into a lopsided trade deal: Experts

Economics

11 May '26