Don’t rush US trade deal yet, GTRI tells India after American court tariff ruling

The Global Trade Research Initiative (GTRI) has said that the May 7 ruling by the United States Court of International Trade against the 10% tariffs applies only to the parties that filed the case — the state of Washington, spice importer Burlap & Barrel, and toy maker Basic Fun!

GTRI said the tariffs will continue for other importers while the US government appeals the ruling, adding that the court chose not to block the tariffs nationwide at this stage. It noted that the “court limited relief to the litigants before it rather than issuing a nationwide injunction.”

In a 2-1 ruling on May 7, the court held that the Donald Trump administration had gone beyond the powers granted by Congress under Section 122 of the Trade Act of 1974. Calling the tariffs “invalid” and “unauthorized by law,” the court noted that the law was meant for balance-of-payments emergencies and not for broad tariffs aimed at reducing trade deficits. The ruling came less than 50 days after the 10% global tariffs were imposed under Section 122 on February 20.

Section 122 allows the US President to impose import tariffs of up to 15% for a maximum of 150 days without congressional approval to address serious balance-of-payments difficulties. The tariffs were imposed on February 20, 2026, hours after the Supreme Court of the United States struck down reciprocal tariffs.

With both reciprocal tariffs and the Section 122 tariffs now invalidated by courts, GTRI said the US tariff system is largely returning to its pre-Trump structure based on standard Most Favoured Nation (MFN) tariff rates under the WTO framework.

GTRI founder Ajay Srivastava said India should wait until the United States develops a more stable and legally reliable trade system before concluding a Bilateral Trade Agreement (BTA). He said the continuing uncertainty around US tariff policy, with major Trump-era tariffs repeatedly struck down by courts, makes long-term trade commitments difficult to justify.

He also noted that the US is currently unwilling to reduce its standard MFN tariffs while expecting India to lower or eliminate its own MFN duties across most sectors. Under such conditions, he warned, any trade deal risks becoming one-sided, with India offering permanent market access concessions without receiving meaningful tariff benefits in return.