India Must Wait For Stable US Trade Policy Before Signing Deal: GTRI

(MENAFN- KNN India) ** New Delhi, May 9 (KNN)** India should avoid rushing into a bilateral trade agreement with the United States as President Donald Trump faces repeated legal setbacks over his tariff regime, trade think tank Global Trade Research Initiative (GTRI) said on Friday.

** US Court Strikes Down Trump’s Tariff Move**

The warning follows a ruling by the United States Court of International Trade, which struck down Trump’s 10 percent global tariffs imposed under Section 122 of the Trade Act of 1974. The May 7 ruling came less than 50 days after the tariffs were introduced on February 20.

According to GTRI, this marks the second major judicial setback to Trump-era trade measures after the Supreme Court of the United States earlier invalidated reciprocal tariffs, reported the Economic Times.

“The continuing uncertainty around US tariff policy makes any long-term trade commitments by India difficult to justify,” GTRI said.

** Policy Uncertainty Raises Risks For India**

The think tank noted that the US administration has been shifting between legal provisions to preserve broad tariff powers, creating uncertainty for businesses and disrupting global supply chains.

It also warned that Washington could increasingly rely on targeted trade actions such as Section 301 investigations and Section 232 national security tariffs on sectors like steel, semiconductors, automobiles, pharmaceuticals and critical minerals.

** GTRI Warns Against One-Sided Trade Concessions**

For India, GTRI said the bigger concern is that the US is unwilling to lower its own Most Favoured Nation (MFN) tariffs while seeking wider market access from India under a bilateral pact.

“Any trade deal risks becoming one-sided, with India offering permanent market access concessions without receiving meaningful tariff benefits in return,” said Ajay Srivastava, GTRI Founder.

The think tank advised India to wait until the US develops a more stable and legally reliable trade framework before finalising any major trade agreement.

** (KNN Bureau)**

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