The Indian authorities is assessing the potential impact of a U.S. court’s ruling that stated President Donald Trump’s retaliatory tariffs on different nations have been “unconstitutional”, in accordance with authorities sources.
These sources additionally confirmed that the U.S. crew of negotiators for the continued India-U.S. Free Trade Agreement discussions can be in India on June 5-6, and added that negotiations have been “progressing well”. The Indian delegation, led by Commerce and Industry Ministry Piyush Goyal, returned from an round week-long journey to the U.S. final weekend.
‘The Court of International Trade in the U.S. on May 28 ruled that the International Emergency Economic Powers Act of 1977— the legislation under which Mr. Trump imposed his ‘Liberation Day’ retaliatory tariffs— didn’t confer on the U.S. President the “unbounded authority” to impose limitless tariffs on practically all nations on this planet.
As such, the court put aside the tariffs, which have been in any case paused by Mr. Trump till July 8. “The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs,” the court famous. “The Trafficking Tariffs fail because they do not deal with the threats set forth in those orders.”
According to commerce consultants, India should use the chance offered by the U.S. court decision to pause and reassess its technique within the FTA negotiations.
“India should resist any agreement shaped by threats or based on unlawful measures,” former Director General of Foreign Trade Ajay Srivastava stated. “Not only do these Trump-era tariffs violate World Trade Organization rules, but the U.S. court has now confirmed they also breach U.S. domestic law.”
“With the Trump tariffs standing on shaky legal ground, India must pause and reassess its negotiation strategy before committing to an FTA that could disproportionately favor U.S. interests,” Mr. Srivastava added.
Published – May 29, 2025 06:24 pm IST
