India currently studying US court’s decision on tariffs: Govt sources

India is closely examining a recent US court decision that struck down former President Donald Trump's tariff move — an outcome officials here are calling a "breather." But while the legal verdict may be favorable, it won’t derail New Delhi’s broader trade ambitions.

Officials said that India is currently studying the US court’s ruling, which deemed the Trump administration’s imposition of tariffs under the “reciprocal duty” rule unlawful. “It’s certainly a breather for us,” a source said, noting that the judgment has opened up a new layer of clarity in the ongoing trade dialogue.

A US team is expected to visit India on June 5 or 6 for further discussions related to the proposed US-India Bilateral Trade Agreement (BTA), signaling continued momentum, the officials added.

However, uncertainty remains. “We’re not sure yet if Trump would appeal to a higher court,” the source added, pointing out that any legal escalation could reintroduce volatility.

Despite the favorable verdict, India is pushing ahead with its trade agenda. “We are keen on a US trade deal irrespective of the court ruling on tariffs,” another official stated.

A government source added that the ruling could lead India to “recalibrate terms of the US trade deal now,” indicating a potential shift in negotiation strategy to align with the new legal environment.

On May 28, a US trade court blocked Trump’s controversial 'Liberation Day' tariffs from taking effect, ruling that the President had exceeded his authority. The tariffs, which targeted nations running trade surpluses with the US, were found to lack legal backing under the International Emergency Economic Powers Act (IEEPA). The act is designed for emergency scenarios involving "unusual and extraordinary" threats — not for routine economic policy.

In response, the Trump administration filed an appeal, setting the stage for a legal battle that may reach the US Supreme Court and shape the future of presidential powers in global trade.