US Court Ruling May Help India Secure Better Deal

The US court ruled that Prez Donald Trump's 'liberation day' tariffs, imposed on 57 countries, including India, were illegal

- Rajeev Jayaswal

NEW DELHI: The American trade court's verdict that President Donald Trump overstepped his authority while imposing 'Liberation Day' import duties may strengthen India's bargaining power while negotiating a bilateral trade deal with the US, experts said, adding that it could also ease pressure on New Delhi to sign an interim deal before July 9 or face a 26% reciprocal tariff.

"The US court judgment has wiped off any moral justification of Trump's already WTO-incompatible 'Liberation Day' tariffs. India should keep this illegality in mind while negotiating the trade agreement," said Global Trade Research Initiative (GTRI) founder and former Indian Trade Service officer Ajay Srivastava.

The US Court of International Trade on May 28 ruled that President Trump's 'Liberation Day' tariffs imposed on goods imported from 57 countries, including India, were illegal under the International Emergency Economic Powers Act (IEEPA) as trade deficits do not meet the "unusual and extraordinary threat" threshold required to invoke such emergency powers. The ruling scotches a major element of Trump's trade strategy, though Section 232 tariffs on steel and automotive imports would remain unaffected by it, Srivastava said.