US Launches Section 301 Trade Probes Against 16 Nations Including India, China, EU Over Excess Industrial Capacity

US Proposes 7.5% Tariff on China Under Section 301 for Excess Industrial Capacity

The US is considering a new 7.5% tariff on China under Section 301 of the Trade Act of 1974, targeting China's excess industrial capacity. This move comes after the Supreme Court struck down a broader tariff plan and signals calibrated trade pressure ahead of a planned Trump-Xi meeting.

India-China Bilateral Trade Reaches $125 Bn (22.6% YoY) Post Xi-Modi Meet; BRICS AI Plan

The September 12, 2026 Xi-Modi meeting in New Delhi signals a diplomatic thaw in India-China relations. Bilateral trade surged to $125 billion (Jan-Aug 2026) with Indian exports up 41%. China also proposed a BRICS AI open-source initiative, offering rich fodder for UPSC topics on IR, economy, and technology governance.

US-China Summit: 2-Month Trade Truce Extension, AI Safety Off Agenda, India Faces Russian Oil Tariff Risk

Trump-Xi summit (Sept 23-24, 2026) resulted in a symbolic but substance-light outcome. AI safety was dropped from talks, a 2-month trade truce extension was agreed, and India faces increased tariff pressure for buying Russian crude oil as China gets a temporary exemption. The summit reinforces India's suspicion that it is the primary US target under the Lindsey O. Graham Sanctioning Russia and Iran Act.

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.

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-U.S. Trade Pact: Exporters Urge Early Conclusion, Tariff Uncertainty Hits Orders, Trade Surplus Narrows to $33.9 Bn

The Commerce Ministry met exporters to discuss India-U.S. trade performance and market access issues amidst ongoing bilateral trade agreement (BTA) negotiations. Exporters urged early conclusion of the pact to reduce tariff uncertainties, as U.S. buyers have reduced order volumes. The meeting also flagged concerns over U.S. safeguard measures on quartz surface products.

Modi-Xi Bilateral at 18th BRICS Summit: India Aims to Reset Trade Ties Amid China Dominance

The Modi-Xi bilateral at the 18th BRICS Summit is critical for India as it seeks to rebalance trade ties, address the growing trade deficit with China (19.2% of imports), and navigate US tariff policies. India hopes to improve market access, integrate MSMEs into BRICS supply chains, and secure critical mineral cooperation.

US House Passes Bill Allowing 100% Tariff on Russian Oil Buyers; India Imports 45% Crude from Russia

The US House passed a bill allowing President Trump to impose up to 100% tariffs on countries importing Russian oil. India, which imports 45% of its crude from Russia, faces potential trade leverage as it negotiates a bilateral trade deal with the US.