‘Resist any agreement shaped by threats…’: After US court strikes down Donald Trump’s tariffs, GTRI says India should proceed with caution on trade deal

US President Donald Trump’s tariffs being struck down by a US trade court should make India tread with caution on a potential trade deal, says the Global Trade Research Initiative (GTRI). The GTRI has advised India to exercise prudence in its current Free Trade Agreement (FTA) discussions with the United States.On May 28, a federal court in Manhattan deemed invalid Trump's initiative to levy reciprocal tariffs on US trading partners, establishing that such tariff impositions require Congressional approval rather than presidential emergency powers.The court's verdict explicitly stated that tariffs, including those enacted under emergency economic authority, were not legally valid.According to an ANI report, GTRI founder Ajay Srivastava, whilst evaluating the ruling's implications on trade discussions, has emphasised that India should not accept any arrangements influenced by threats or founded on illegal measures.Also Read | ‘Overstepped his authority…’: What are the scathing observations made by US trade court in ruling against Donald Trump’s tariffs?Srivastava noted that the tariffs from Trump's administration contravene both World Trade Organisation (WTO) regulations and US domestic legislation, as confirmed by the federal court ruling."With the Trump tariffs standing on shaky legal ground, India must pause and reassess its negotiation strategy before committing to an FTA that could disproportionately favour U.S. interests," said Srivastava in a statement.India and the United States are set to finalise the initial phase of the anticipated Bilateral Trade Agreement (BTA) prior to July.The trade agreement between India and the US would represent a crucial development in the economic partnership between these major economies, creating potential opportunities for trade and investment collaboration.The United States maintained its position as India's primary trading partner for the fourth successive year in 2024-25, with trade between the nations reaching USD 131.84 billion. During this period, India recorded a goods trade surplus of USD 41.18 billion with the US.Following the US federal court's significant decision, global stock markets responded favourably, particularly in prominent Asian markets. Japan's Nikkei and Korea's Kospi indices recorded increases of two per cent post-ruling.Also Read | ‘It can either be big or beautiful, not both…’: Elon Musk disappointed by Donald Trump's ‘Big beautiful bill'; sign of fracture in key relationship?