Daijiworld Media Network- Washington (DD)
Washington, May 29: In a ruling that may reshape India–US trade dynamics, the US Court of International Trade has clipped the wings of President Donald Trump, declaring that several of his tariff decisions under the International Emergency Economic Powers Act (IEEPA) were unlawful.
Just weeks ahead of a crucial interim trade deal between the two countries, the court found that Worldwide, Retaliatory, and Trafficking Tariff Orders issued under IEEPA were beyond presidential authority. However, existing duties under other statutes — such as the 25% tariffs on steel, aluminium, and automotive parts — will remain in effect for Indian exporters.
The ruling lifts a significant pressure point in bilateral negotiations, particularly as India had been under mounting pressure to grant greater market access to politically sensitive sectors like agriculture and digital services in order to avoid steep penalties.
A senior official from India’s Ministry of Commerce, speaking on condition of anonymity, said, “This ruling opens the door for a more balanced dialogue. India can now renegotiate terms without the threat of arbitrary tariffs hanging over the table.”
President Trump, who is currently campaigning for re-election, had threatened a 26% reciprocal tariff on Indian goods, accusing New Delhi of unfair trade practices. His administration had also demanded relaxed data policies and increased access for US Big Tech and satellite services, areas where India has adopted a cautious, sovereignty-first stance.
In response to the court ruling, White House spokesperson Kush Desai said, “It is not for unelected judges to decide how to properly address a national emergency.” He added that Trump “will use every lever of executive power” to protect American interests.
Meanwhile, India had already signalled goodwill in recent months, slashing import duties on items like bourbon whiskey and premium motorcycles in the Union Budget. But with the court striking down some of Trump’s legal tools, New Delhi now has the room to reassess its concessions.
India’s firm stance on data privacy and digital governance also intersects with trade discussions. Trump-aligned officials had urged India to ease restrictions on cross-border data flows and allow freer play for American digital giants. However, a 2024 parliamentary report slammed global tech players for anti-competitive practices, singling out Google for manipulating app search rankings and favoring its own payment app.
In another flashpoint, the United States has been lobbying India to liberalize its satellite communication policies — a move seen as paving the way for firms like Elon Musk’s Starlink, which is reportedly aligned with Trump’s strategic interests.
With the latest court verdict, experts believe India can push for a future-ready and equitable trade deal, without being coerced into policy compromises.
“This is a major win for Indian negotiators,” said trade analyst Sonal Mehta. “The verdict neutralises a key pressure tactic. India can now approach trade talks from a position of strength — protecting its digital ecosystem, food security, and industrial base.”
As discussions resume in the coming weeks, New Delhi’s path forward appears clearer — and more confident.