India is among the countries affected as Trump’s latest tariff policy faces a major legal test
A coalition of 25 US states has filed a lawsuit challenging President Donald Trump‘s latest round of tariffs on imports from 59 countries and the European Union, arguing that the sweeping duties are unlawful and exceed the powers granted to the administration under US trade laws. India is among the countries affected by the tariffs.
The lawsuit, filed before the US Court of International Trade, seeks to block the tariffs and have them declared illegal. The states also want businesses to be refunded for duties already paid under the new measures.
Why are the states challenging the tariffs?
The plaintiffs argue that the Trump administration is attempting to revive broad import duties that were previously struck down by the US Supreme Court earlier this year.
After the Supreme Court ruled that earlier emergency tariff powers could not be used for sweeping global duties, the administration introduced a fresh tariff regime under Section 301 of the Trade Act of 1974, citing concerns over forced labour in global supply chains. The states contend that this justification is merely a pretext to restore tariffs that courts had already rejected.
What do the new tariffs cover?
The latest measures impose tariffs of 10% to 12.5% on imports from 60 trading partners, including India, and affect the overwhelming majority of US imports. The administration maintains the duties are necessary to combat unfair trade practices and reduce the entry of goods allegedly linked to forced labour.
What does it mean for India?
India is among the countries covered by the tariff regime, making the lawsuit particularly significant for Indian exporters.
If the court ultimately strikes down the tariffs, Indian exporters could benefit from lower trade barriers in the US market. However, until the litigation is resolved, the duties are expected to remain in force unless a court grants interim relief.
The legal challenge also comes against the backdrop of broader India-US trade engagement, with both countries continuing negotiations aimed at expanding market access and strengthening bilateral economic ties.
Trump administration defends the move
The Trump administration has defended the tariffs, arguing that they are legally justified under Section 301 and are essential to protecting American commerce and addressing unfair trade practices.
The case is expected to become another closely watched legal battle over the limits of presidential authority in trade policy.
For all the latest updates, download PGurus App.
