A US trade court on Wednesday blocked US President Donald Trump’s reciprocal tariffs, easing pressure on India to arrive at an interim trade pact immediately. But negotiations will continue on the India-US bilateral trade agreement (BTA) as a good trade deal will benefit both countries, said officials. The court ruling blocks most Trump tariffs, including the reciprocal and baseline levies, but it leaves out industry-specific tariffs such as those on automobiles, steel and aluminum, that were imposed using a different statute. The Trump administration immediately filed an appeal with the US Court of Appeals for the Federal Circuit. The verdict has, however, lightened the load on India because the Trump administration would now be engaged in a legal battle over tariffs, said experts. While India’s Commerce Department is closely scrutinising the verdict, experts advise that the country should “take it slow” and let the situation evolve. “India must carefully observe the situation in the US and slow down the negotiating process. If tomorrow, the Court of Appeals concurs with yesterday’s decision, then all the negotiations will have no legal validity,” said Biswajit Dhar, Distinguished Professor, Council for Social Development. This could strengthen India’s negotiating position and help it get a better deal, he said. The government remained far more circumspect about commenting on what the verdict entails for the ongoing India-US trade negotiations. “India never interferes in other countries’ internal matters... We want to maintain good economic relations with all the developed countries. We are committed to ensuring opportunities for our youth, farmers and professions,” said Commerce Minister Piyush Goyal when asked about the US federal court verdict. “We are going to scrutinise the ruling to see what exactly it entails and what are the arguments against the reciprocal duties. The appeal process also has to be followed closely,” an official tracking the matter said. According to India’s chief negotiator with the US, Rajesh Agarwal, Additional Secretary, Ministry of Commerce, India and the US started discussions on the BTA much before the reciprocal tariffs were announced on April 2 as both countries want to make the most of the complementarity between the two economies. “If we do a good trade deal, it can be a defining partnership in the bilateral trade arena. And that is how we are approaching the BTA,” Agarwal said. Alluding to the US federal court ruling, Agarwal said the overall discussion on tariffs and trade deficit was a “narrative of the US”. “It is about the challenges that they are facing as a big market. That I think should not come in the way of our trade partnership with US that we are trying to stitch together,” he said. As per the US Court of International Trade, Trump “overstepped his authority” by invoking emergency authority to impose sweeping tariffs on numerous countries. The President’s use of tariffs as leverage was not allowed by law, it said. The Trump administration has multiple options to get around the judges’ ruling, including other sections of trade laws it can utilise, Kevin Hassett, Director, National Economic Council, said in an interview. More Like This Published on May 29, 2025