Amid India-US trade deal talks, Trump admin’s fresh warning to world: ‘Old tariffs may return’

Published 26 June 2026 · india

Bessent said tariff rates could revert to their earlier levels if the ongoing Section 301 investigations lead to the imposition of new duties. (AI image)

Bessent said tariff rates could revert to their earlier levels if the ongoing Section 301 investigations lead to the imposition of new duties. (AI image) What US has said on more tariffs What is Section 301? Section 301 explained India-US trade deal US Treasury Secretary Scott Bessent's latest warning of additional tariffs under Section 301 comes at a time when US Trade Representative Jamieson Greer was in India this week.Greer met Commerce minister Piyush Goyal and held two-day talks to finalize the first phase of the India-US bilateral trade agreement (BTA). While both sides have indicated that they are ‘very close’ to finalising a trade deal, India has held firm on looking to attain an advantage compared to other countries.The latest statements by Bessent indicate that the Donald Trump administration is looking at alternative ways to impose tariffs on its trading partners since the US Supreme Court has ruled reciprocal tariffs as illegal.Bessent said tariff rates could revert to their earlier levels if the ongoing Section 301 investigations by the Office of the US Trade Representative (USTR) lead to the imposition of new duties."Right now, we have something called Section 122 tariffs, which is a 10% global tariff. Currently, USTR ambassador Jamieson Greer, is doing studies for Section 301.

And if those studies are successful... then the tariff rates are going to go back to exactly where they were," Bessent said.Bessent made it clear that President Donald Trump had used reciprocal tariffs last year as a tool to bring trading partners to the negotiating table and secure trade agreements.He indicated that the outcomes of the Section 301 investigations are intended to serve a similar purpose.The Section 301 investigation initiated by the United States in March 2026 has remained a key element in the ongoing trade negotiations between India and the US.Section 301 of the US Trade Act of 1974 empowers the Office of the United States Trade Representative (USTR) to investigate the trade policies and practices of foreign governments. Its purpose is to determine whether such practices unfairly disadvantage US trade interests.India and the United States had announced a trade pact in February this year under which tariffs on Indian exports were reduced from 50% to 18%. Before the agreement could be formally finalised, however, the US Supreme Court ruled that the reciprocal tariffs introduced by the Donald Trump administration were unlawful.Shortly thereafter, President Trump imposed a universal 10% tariff, which is scheduled to lapse next month.Under US law, Section 122 tariffs can remain in force for a maximum of 150 days, with the current measures set to expire on July 24.In its preliminary findings, the USTR has proposed an additional 12.5% tariff on imports from India and more than 50 other countries, citing their alleged failure to curb imports linked to forced labour.