US Section 301 Tariffs: India at 10% in Four-Tier Structure; Vietnam, China Face Higher Rates

US Imposes 50% Tariffs on $20 Bn Canadian Goods via Section 338; Canada Retaliates Dollar-for-Dollar

The US-Canada trade war escalates as Washington imposes 50% tariffs on $20 billion worth of Canadian goods under a rarely-used Depression-era law (Section 338 of the Tariff Act of 1930). Canada, led by new PM Mark Carney, vows dollar-for-dollar retaliation. This marks the first use of Section 338, after the US Supreme Court struck down earlier tariff powers under IEEPA. For exam aspirants, this is a key case study on trade law, executive power, and international economic diplomacy.

EU CBAM: Carbon Border Tax on Steel Imports to Cost India €190/Tonne from Feb 2027

The EU has implemented the Carbon Border Adjustment Mechanism (CBAM), a carbon tax on imports of steel, aluminium, cement, fertilisers, hydrogen, and electricity. For India, this is primarily a steel tax—$5.4 billion of its $6.3 billion CBAM-exposed exports to the EU in 2024 were iron and steel. With Indian steel emitting 2.54 tonnes of CO2 per tonne (vs. world avg. 1.9), the tax could cut exports by 24%, and BRICS has formally opposed it as protectionist in the New Delhi Declaration.

US Imposes 50% Tariffs on $20 Billion Canadian Goods; Canada Retaliates Under Section 338 of Tariff Act 1930

The US has imposed 50% tariffs on $20 billion worth of Canadian imports, invoking a rarely-used Depression-era law (Section 338, Tariff Act 1930). Canada immediately retaliated dollar-for-dollar, escalating a trade war that threatens the renewal of the USMCA trade pact. This is critical for understanding modern trade protectionism, legal instruments for tariffs, and the fragility of bilateral economic alliances.

U.S. Senate Passes Bill Proposing 100% Tariffs on Russian Oil Importers; India Engaged in Talks

The U.S. Senate passed a bill proposing up to 100% tariffs on countries importing Russian oil in large quantities, potentially impacting India. India has had 'reassuring' discussions with the U.S., including on a trade deal, to mitigate the impact. This is critical for UPSC as it tests India-US trade relations, sanctions policy, and energy security.

US Treasury Secretary Bessent Urges G20 to Curb China Imports; $1.2 Trillion Surplus Flagged

US Treasury Secretary Scott Bessent has called on G20 nations to re-examine trade terms with China to reduce global imbalances, citing China's unsustainable $1.2 trillion trade surplus. This comes as the US rebuilds its tariff policy after legal setbacks and pushes for a joint G20 statement on trade imbalances, while also escalating secondary sanctions on Iran.

India Achieves Tariff Parity on Textile Exports with Bangladesh, Vietnam; Nine FTAs Cover $60 Trillion GDP

India's textile industry can no longer blame tariffs for poor export performance as Commerce Minister Piyush Goyal announced that India now enjoys tariff parity or advantage over competitors like Bangladesh and Vietnam in most developed markets, thanks to an expanding network of FTAs covering $60 trillion GDP.

India's Manufacturing Weakness Exposed as Trade Deficits with China ($112B) and Russia ($59B) Dominate BRICS Talks

India's massive trade deficits with China ($112B) and Russia ($59B) reveal a fundamental manufacturing weakness. As BRICS leaders meet in Delhi, the article argues that diplomacy cannot substitute for industrial capacity. For exam aspirants, this is a critical case study of how India's external economic relations are constrained by domestic industrial shortcomings.

US House Advances Russia Sanctions Bill: 100% Tariffs on India, China for Buying Russian Oil

The US House of Representatives has advanced a bill that would authorize President Trump to impose 100% tariffs on India, China, and other countries for purchasing oil and gas from Russia. The bill, already passed by the Senate with an 86-11 majority, targets Russia's energy revenue and its 'shadow fleet', and is expected for a final House vote on September 16, 2026.