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Informist, Thursday, May 29, 2025

 

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--Govt source: US Court ruling on reciprocal duty a breather for India 
--Govt source: Not sure yet if Trump would appeal to higher court 
--Govt source: Keen on US trade deal irrespective of court ruling on tariffs 
--Govt source: India may recalibrate terms of US trade deal now

 

By Krity Ambey

 

NEW DELHI – The US Court of International Trade's verdict to halt the US President Donald Trump's proposed reciprocal tariffs is a breather for the Indian government, which has been actively engaged since February to sign a trade deal with the US. New Delhi may recalibrate some terms of trade deal in light of the judgement, a government official said.

"We see it like a temporary relief because we are not sure if Trump would appeal to a higher court," the official told Informist. Appeals from final decisions of the above mentioned court may be taken to the US Court of Appeals for the Federal Circuit and, ultimately, to the Supreme Court of the US, according to the US Court of International Trade.

 

Trump, who has expressed displeasure over US' trade deficit with India at several instances in the past and has criticised tariff rates, had proposed a reciprocal tariff of 26% on Indian goods. The tariff would have come into effect in July if not for the latest judgement by the US court.

 

So far, India had been aiming to seal the first tranche of the trade deal before July to safeguard Indian exports from the reciprocal tariff. In fact, last week Commerce and Industry Minister Piyush Goyal had also visited Washington to expedite the discussions for the deal. Both sides had made considerable progress in the trade talks and India was also willing to cut duty massively on goods from the US, Trump had said. 

While India may reconsider some terms now, it is still keen on concluding a trade deal with the US, irrespective of the court ruling, according to the Indian government official quoted above.

 

Washington's reciprocal tariffs, if effected, may hurt India's exports growth as the US is India's top export destination. Indian exports to the US in 2024 were worth $80.77 billion and India had a trade surplus of $36.35 billion with the US in that year, according to the data available with the commerce ministry.  End

 

US$1 = INR 85.50

 

Edited by Akul Nishant Akhoury

 

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