Indian commerce negotiators are “learning the implications” of the US Court docket of Worldwide Commerce that has considerably curbed US President Donald Trump to impose sweeping tariffs as US commerce negotiators are set to reach in India for two-day talks on June 5 and 6, a senior authorities official stated on Thursday.
The US negotiator’s go to to India comes following a significant lack of leverage that was driving main US commerce negotiations globally since Trump took over White Home. Nevertheless, authorities officers stated that the long run foundation of an India-US commerce deal stays robust and that negotiations are of their ultimate section.
Commerce consultants have warned that US commerce offers underneath the second Trump administration are one-sided as was evident in its commerce take care of the UK and that India ought to guard in opposition to any adversarial long run dedication underneath Trump’s stress. Specialists have additionally burdened that a number of of Trump’s tariffs and commerce maneuverings are usually not WTO-complaint.
“The courtroom holds, for the foregoing causes, that IEEPA doesn’t authorise any of the Worldwide, Retaliatory, or Trafficking Tariff Orders. The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to control importation by the use of tariffs,” the US courtroom of worldwide commerce dominated on Wednesday.
Giving the order a far-reaching political and financial impression, the courtroom acknowledged that if the challenged tariff orders are “illegal for the plaintiffs, they’re illegal for everybody”. Nevertheless, the Trump administration instantly filed an attraction, which means readability on Trump’s authority will come from larger courts—however solely after a protracted authorized battle.
That stated, the ruling doesn’t have an effect on tariffs imposed by the Trump administration underneath separate authorized provisions—together with the 25 per cent obligation on metal, aluminium and automotive components—the place Indian exporters will proceed to face elevated tariffs.
The courtroom order provides a short lived breather for India, as Trump had on April 2 introduced a steep 26 per cent reciprocal tariff, regardless of India and the US having agreed to start negotiations for a commerce deal. The tariffs have been paused until July 8.
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Ignoring the excess in providers and the substantial income earned by US corporations in India, Trump repeatedly criticised the commerce deficit in items to seemingly stress New Delhi into signing an early settlement.
Strain on India to signal US deal
The courtroom order quickly grants India extra flexibility in dealing with US calls for throughout ongoing negotiations. A piece of officers within the Ministry of Commerce and Trade had raised considerations about India’s willingness to open up most sectors to keep away from reciprocal tariffs. These considerations stem from the truth that granting market entry to at least one nation usually invitations comparable calls for from different companions in subsequent commerce agreements, complicating negotiations.
Throughout the talks, Trump officers pushed Indian negotiators to open up a number of politically delicate areas—similar to agriculture—which has historically been saved out of commerce offers and accorded excessive safety. The USA Commerce Consultant (USTR) even cited India’s restrictions on genetically modified (GM) corn and soybean imports as non-tariff limitations, ignoring India’s considerations over meals safety.
In a bid to appease Trump, New Delhi had already introduced a number of obligation cuts—similar to on bourbon whiskey and motorbikes—throughout the Union Finances presentation. The stress to conclude a commerce settlement with the US stays excessive, particularly as India agreed to a Phrases of Reference (ToR) to kick-start formal commerce negotiations simply previous to the April 2 reciprocal tariff deadline, as The Indian Specific had reported.
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Regardless of progress in commerce discuss, Trump has continued his tariff rhetoric concentrating on India. After Apple introduced {that a} majority of iPhones to be offered within the US could be produced in India, Trump stated that Apple must pay a 25 per cent tariff if it offered iPhones within the US which can be in-built India or elsewhere. Trump additionally acknowledged that he had instructed Apple CEO Tim Cook dinner he doesn’t need the corporate to develop its manufacturing operations in India until it’s to serve the Indian home market.
Push for far-reaching regulatory overhaul
US negotiators have additionally sought varied regulatory adjustments to favour US company pursuits in India, starting from relaxed knowledge localisation guidelines to reforms within the patent regime—notably within the pharmaceutical sector. In 2025, the US positioned India on the Precedence Watch Checklist, claiming that India maintains excessive customs duties on IP-intensive merchandise similar to medical units and prescribed drugs.
“Within the pharmaceutical sector, america continues to observe the restriction on patent-eligible subject material in Part 3(d) of the Indian Patents Act and its impacts. Pharmaceutical stakeholders additionally specific considerations as as to if India has an efficient mechanism for the early decision of potential pharmaceutical patent disputes,” the US report on IPR launched final month stated.
The US push for higher patent safety in India comes regardless of India being a key supply of low-cost generic medicines for a lot of nations, together with the US. India has persistently resisted stress from free commerce settlement (FTA) companions to permit the “evergreening” of medication—a technique utilized by pharmaceutical companies to increase patent lifespans and keep market dominance. Nevertheless, commerce consultants stated that India is dealing with repeated calls for for years, each in WTO in addition to bilateral commerce offers.
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Knowledge localisation and large tech challenges
Whereas Trump advocated for freer knowledge flows and expanded entry for large tech companies in India, a 2018 United Nations Convention on Commerce and Growth (UNCTAD) report, Energy, Platforms, and the Free Commerce Delusion, highlighted how management over knowledge has grow to be a significant supply of market energy and a barrier to new entrants.
A Standing Committee on Finance (2022–23), investigating anti-competitive practices by Huge Tech, additionally famous that Google Play—being the dominant app distribution platform on Android—mandates using its cost system for paid apps and in-app purchases. “It seems that Google controls a major quantity of funds processed on this market,” the report stated.
It additionally stated that Google unfairly privileges Google Pay by prominently inserting it on the Play Retailer, Android working system, and Android-based smartphones, whereas skewing search outcomes to favour its personal app. The Competitors Fee of India (CCI), in a preliminary order, noticed that manipulation of such options may act as a strong device to divert site visitors in the direction of Google’s new apps—undermining honest competitors.
Trump’s remaining tariff instruments and their limitations
Arguing earlier than the courtroom to keep away from an adversarial ruling, US Secretary of Commerce Howard Lutnick burdened the restrictions of different authorized instruments accessible to the Trump administration to deal with rising commerce deficits, notably with nations like China.
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Lutnick defined that alternate options—similar to Part 232 of the Commerce Enlargement Act of 1962 and Part 301 of the Commerce Act of 1974—are usually not designed for nationwide emergencies, are procedurally time-consuming, and don’t allow rapid motion.
“Underneath Part 232, the Division of Commerce has as much as 270 days to conduct an investigation and submit a report back to the President, who then has as much as 90 further days to determine whether or not to behave, and an additional 15 days to implement any motion. Equally, underneath Part 301, america Commerce Consultant should full an investigation inside 12 months, with further time for enforcement. IEEPA is totally different—it permits the President to behave instantly to guard nationwide pursuits, offered all circumstances underneath IEEPA are glad,” Lutnick instructed the courtroom.
With out this device, the President’s capability to formulate overseas coverage could be severely constrained, and nationwide safety could be in danger, he added.
Anticipate no change in US intent
Markus Wagner, Professor of Worldwide and Comparative Regulation on the College of Wollongong, Australia, stated in a social media publish that IEEPA was “by no means the suitable automobile” and that Trump administration attorneys have been seemingly absolutely conscious that its use could be discovered illegal.
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“However that was seemingly by no means the purpose—basing US measures on IEEPA purchased the Trump administration time. That point isn’t over but, because it’s protected to foretell that the Court docket of Worldwide Commerce (CIT) choice will a) be appealed and b) any implementation of the choice, ought to it stand, can be delayed as a lot as legally potential,” Wagner stated.
The underlying methods or targets haven’t modified, he added.
“The larger query is what different nations will do—whether or not to uphold a few of the present guidelines or discover methods to mitigate the harm the Trump administration has executed and can seemingly proceed to do,” the professor stated.