India shouldn’t sign US trade deal in a hurry:US court verdict paves way for pre-tariff era rates unless Trump chooses to use other laws

At the hindsight of the United States Court of International Trade’s quashing of the US President Donald Trump’s 10% Worldwide Tariffs’ levied by invoking the Section 122 of the Trade Act of 1974, the global think tank, GTRI, founder, Ajay Srivastava said on Friday, 8 May, 2026, that India should wait for America to evolve a more stable and legally predictable trade framework before moving ahead with the proposed bilateral trade agreement. Continuous quashing of Trump tariffs levied earlier under two separate acts – one the International Emergency Economic Powers Act (IEEPA) and the other the Section 122 of the Trade Act of 1974, has led to heightened uncertainty over the US tariff regime. Experts said that the US federal court’s latest ruling is a crucial reminder that Trump’s global tariffs violated WTO (World Trade Organisation) rules, and their striking down is a positive signal for multilateral trade norms. “The continuing uncertainty around US tariff policy, with major Trump-era tariffs repeatedly struck down by courts, makes any long-term trade commitments by India difficult to justify.” -GTRI, founder Ajay Srivastava He said that India should wait until the United States develops a more stable and legally reliable trade system before concluding the Bilateral Trade Agreement. At present, the US is also not prepared to reduce its standard Most-Favoured-Nation (MFN) tariffs, while expecting India to lower or eliminate its MFN duties across most sectors. Under such conditions, any trade deal risks becoming one-sided, with India offering permanent market access concessions without receiving any meaningful tariff benefits in return.” – Srivastava Shishir Priyadarshi, president, Chintan Research Foundation, former Director, WTO, said to news agency, PTI, that the federal court s ruling is a crucial reminder that Trump s global tariffs are in violation to the rules of the violated WTO rules, and their striking down is a positive signal for multilateral trade norms. “However, with the decision held in abeyance, uncertainty lingers. We must remain vigilant, as the US may still seek new avenues to circumvent the ruling.” -Priyadarshi to PTI The US Court of International Trade, in a 2-1 ruling on 7 May, said the Trump administration had gone beyond the powers given by Congress under Section 122 of the Trade Act of 1974. It was struck down less than 50 days after they were introduced on 20 February. Earlier, the US Supreme Court had also negated the reciprocal tariffs imposed by Trump administration by invoking the International Emergency Economic Powers Act (IEEPA).