High Court Appeal Filed by Trump on Overturning of Import Taxes
September 4, 2025
The ongoing trade dispute between the United States and India remains unresolved, as the 50% tariffs imposed by the US on India's goods, including a 25% penalty for buying Russian oil, remain in effect until October 14. This decision comes despite a federal appeals court ruling in Washington DC stating that most of the tariffs imposed by the Trump administration were illegal.
India has argued that the tariffs are unfair and unjustified, as the US and other Western nations are also doing business with Moscow. The Indian government has expressed hope for a Bilateral Trade Agreement (BTA) with the US, but has resolved not to compromise beyond a point, particularly on market access for sensitive agriculture and dairy products, genetically modified soybean, and corn.
The US government, however, maintains that the tariffs are necessary to deal with a pre-existing national emergency regarding Russia's war in Ukraine. The administration believes that the denial of tariff authority could expose the US to trade retaliation without effective defenses and potentially thrust America back to the "brink of economic catastrophe."
In a recent development, the US President Donald Trump's administration has filed an appeal with the US Supreme Court against the striking down of tariffs on countries including India. The US government states that it authorised tariffs against India for purchasing Russian energy products.
The US government's move indicates a rocky road ahead in the potential BTA negotiations. Trump himself has criticised India for its high tariffs, stating that the reason for the one-sided relationship between the two countries is India's imposition of such high tariffs that American businesses are unable to sell into India.
Meanwhile, the US postponed the visit of its team of trade negotiators to Delhi, which was scheduled on August 25, and has yet to provide a new date. The latest move by Trump indicates a challenging path for the two nations to reach a mutually beneficial trade agreement.
On the other hand, US Commerce Minister Piyush Goyal has expressed hopes of finalising a BTA with India by November-end. The US government, along with six major trading partners and the 27-nation EU, has entered into framework deals with the US, agreeing to make approximately $2 trillion of purchases and investment in the US' economy, under the International Emergency Economic Powers Act tariffs.
In response, the Indian government has stated that it will not impose retaliatory tariffs on the US, as it is still hopeful of a BTA between the two countries. However, the Indian government has made it clear that it will not compromise on its key interests in the negotiations.
The appeal suggests a potential long-term battle on tariffs with India. The resolution of this dispute will have significant implications for the global trade landscape and the economic relations between the US and India. As the negotiations continue, both nations will need to find a way to address their concerns while maintaining a balanced and fair trade relationship.
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