India Macro Impact Desk

US Tariffs and Section 301 Escalate India Trade Risks

US Tariffs and Section 301 Escalate India Trade Risks

Key Questions

What US tariffs are affecting India-China trade dynamics?

The US imposed 25% tariffs on Chinese aluminum and copper, potentially triggering supply diversion to India. This coincides with India ramping up anti-dumping investigations.

What is the focus of US Section 301 hearings on India?

Hearings target Indian subsidies in steel, pharma, and textiles sectors. They occur as an India-US trade deal nears with targets of $500 billion in trade and $60 billion in investments.

How might these trade developments benefit India?

The evolving deal could boost M&A activity and require enhanced compliance from Indian firms. It also positions India to manage risks from diverted Chinese supplies.

US 25% tariffs on Chinese Al/Cu trigger supply diversion and India anti-dumping work; Section 301 hearings target Indian subsidies (steel/pharma/textiles) while India-US deal nears with $500B/$60B targets boosting M&A and compliance.

Sources (2)
Updated May 24, 2026
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