US Court Blocks Trump-Era Tariff Powers, Easing Pressure on India

Court Ruling Rolls Back Tariff Authority, Eases US-India Trade Tensions

Written by: Supriya Kadu

Edited by: Pinky Deshmukh

Last Updated: May 29, 2025

Summary: A US court ruling curbs Donald Trump’s authority to impose broad tariffs, giving India some much-needed breathing space in ongoing trade talks.

In a huge triumph for global trade fairness, a US court clipped the wings of former President Donald Trump's emergency tariff powers, giving India a sigh of relief. The ruling declares that Trump overstepped his authority under the International Emergency Economic Powers Act (IEEPA) when he tried to slap heavy tariffs on imports, including those from India.

These “Liberation Day” tariffs would’ve meant a 26% duty on Indian goods and demands for opening up sensitive Indian markets, like agriculture. Understandably, it put India under immense pressure during trade negotiations with Washington.

India had already made some tough concessions—cutting tariffs on whiskey and motorbikes, for example—to keep the talks going and avoid a trade blow-up. But now, with this court decision, India finally has some breathing room. It no longer has to negotiate with a metaphorical sword hanging overhead.

That said, not all tariffs are off the table. The court's ruling only affects those imposed under IEEPA, so existing duties on steel and aluminum still apply. Indian exporters in those sectors are still feeling the heat.

The Trump camp is likely to challenge the decision in the Supreme Court, but for now, the judgment puts clear limits on what a President can do in the name of national security, and gives India a stronger footing at the trade table.