India Urged to Tread Carefully Amid US Trade Negotiations After Court Ruling

The US court's decision to nullify Trump's tariffs prompts India's Global Trade Research Initiative to advise caution in Free Trade Agreement discussions. Analysts emphasize re-evaluating India's negotiation strategies to avoid agreements favoring US interests. Meanwhile, global markets, including India, react positively to the ruling.

The Global Trade Research Initiative (GTRI) has cautioned India to proceed carefully in its ongoing Free Trade Agreement (FTA) discussions with the United States. This advice follows a ruling from a Manhattan federal court that struck down President Donald Trump's proposed reciprocal tariffs on US trading partners.

The court deemed the tariffs, including those imposed under emergency powers, as unlawful, noting that tariff imposition should originate from Congress, not the President. Ajay Srivastava, GTRI's founder, emphasized that India should avoid agreements influenced by illegal tariffs or threats, particularly those conflicting with World Trade Organisation (WTO) rules and US laws.

India and the US are expected to sign a significant Bilateral Trade Agreement (BTA) soon, marking a new chapter in trade relations. Following the court's landmark decision, stock markets worldwide, notably in Japan and Korea, reacted positively, although India saw mixed results with its Sensex index rising over 500 points before stabilizing.

(With inputs from agencies.)