Trump tariffs blocked: What the US court ruling means for Indian market and global trade
Legal brake on tariffs could ease U.S.-India trade talks
Indian exporters may benefit as supply chains de-risk from China
Live Events
Markets cheer legal clarity, Indian equities open higher
Court ruling triggers repricing in safe-haven assets
Tariff agility curbed for future administrations
Legal uncertainty could shift the U.S.-China trade equation
(You can now subscribe to our
(You can now subscribe to our ETMarkets WhatsApp channel
In a landmark verdict, the U.S. Court of International Trade ruled that President Donald Trump exceeded his authority by invoking emergency powers to impose sweeping tariffs and halted most of Trump's tariffs from taking effect.The decision not only blocks the so-called 'Liberation Day' tariffs in their tracks, but also sets the stage for broader legal challenges to executive-led trade actions. Motilal Oswal Financial Services outlines why this judgment could reshape global trade dynamics, and what it could mean for India.'A pullback in U.S. tariff aggression creates space for India to strengthen trade positioning,' said Motilal Oswal. With Trump's 26% reciprocal tariff threat now under legal cloud, India may gain leverage in its ongoing trade negotiations with Washington, especially as it offers deep tariff cuts on non-sensitive goods.Motilal Oswal noted that exporters in sectors like pharma and textiles could benefit if the ruling weakens the U.S.'s reliance on China-centric trade strategies. 'Exporters in pharma, textiles, may benefit if global supply chains de-risk from China,' the brokerage said, pointing to India as a natural beneficiary of any diversification shift.The decision triggered a positive sentiment wave in equities. 'Markets may not react sharply as the original tariffs' economic impact was limited,' Motilal Oswal said, 'but this sets a big precedent for future administrations.' On Thursday, the Nifty 50 rose 0.29% while the Sensex climbed 0.34%, reflecting early optimism.The risk-on mood hit safe-haven assets. Gold fell 0.7% to its lowest in over a week, while the U.S. dollar strengthened. According to Motilal Oswal, 'Emergency powers are now under tighter judicial scrutiny,' leading investors to recalibrate expectations on trade-linked uncertainty and favour risk assets.Motilal Oswal highlighted that the U.S. court's verdict 'sets a precedent that may reduce future tariff agility — even in genuine crises.' With the court rejecting the use of a decades-old law to justify economic penalties, executive freedom over trade has now come under structural limits, adding new layers to trade policymaking.The judgment introduces a new legal dimension to U.S.-China trade tensions. 'U.S.-China trade tensions could enter a new phase of legal uncertainty,' Motilal Oswal observed, implying that geopolitical trade decisions may face more institutional checks, opening indirect windows of opportunity for competitors like India.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
News18
19 minutes ago
- News18
US Reaffirms Strong Support To India In Fight Against Terrorism: State Department
Last Updated: The multi-party delegation led by Congress MP Shashi Tharoor met the US Deputy Secretary of State Christopher Landau last week in Washington. The US reaffirmed its strong support for India's fight against terrorism and the bilateral strategic partnership during the visit of an Indian all-party parliamentary delegation last week, the State Department said. The multi-party delegation led by Congress MP Shashi Tharoor met the US Deputy Secretary of State Christopher Landau last week in Washington. State Department Spokesperson Tammy Bruce said at a press briefing on Tuesday that Landau reaffirmed the US' strong support to India in the fight against terrorism and the strategic partnership between the two countries. The delegation visited the US as part of the government's global outreach efforts after Operation Sindoor. India launched the operation in retaliation to the April 22 Pahalgam terror attack that claimed 26 lives. Responding to a question, Bruce said that a Pakistani parliamentary delegation led by Bilawal Bhutto Zardari met officials of the State Department, including Under Secretary for Political Affairs Allison Hooker, during its visit to Washington last week. Hooker reiterated the US support for the ongoing cessation of on-ground hostilities '– as you might imagine, thank God – between India and Pakistan", Bruce said, adding that they also discussed important issues about the US-Pakistan bilateral relationship, including counterterrorism cooperation. 'So that meeting occurred." When asked if the US received any assurance from Pakistan that it will take action against terrorists, Bruce said she was not going to discuss the details of those conversations. In response to a question on President Donald Trump offering to 'mediate" on the issue of Kashmir, Bruce said, 'Well, I – obviously, I can't speak to what's on the mind or the plans of the President. What I do know is that I think we all recognise that President Trump in each step that he takes, it's made to solve generational differences between countries, generational war." Bruce added that it should not 'surprise" anyone that he would want to 'manage" something like that. 'So, while I can't speak to his plans, the world knows his nature, and I can't speak to any details of what he might have in that regard…But it is an exciting time that if we can get to a point in that particular conflict..," Bruce said adding that it is a 'very interesting time." India has rejected any mediation related to the dispute on Jammu and Kashmir with Pakistan and maintains that Jammu and Kashmir and Ladakh are and will always remain an 'integral" part of the country. (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI)
India Today
24 minutes ago
- India Today
LA's protests swell to Chicago, Atlanta; more planned despite Trump's warning
The wave of protests that began in Los Angeles over federal immigration raids, which led President Donald Trump to deploy National Guard troops and Marines, has now spread to cities across the country. Demonstrators in places like Seattle, Austin, Chicago and Washington DC. have taken to the streets, chanting anti-ICE slogans, carrying protest signs and blocking traffic near federal buildings and in major downtown many of the demonstrations have remained peaceful, some have escalated into confrontations with police, who have made arrests and used chemical agents to disperse crowds. Activist groups are now organising a new round of nationwide protests, including a series of 'No Kings' rallies planned for Saturday to coincide with Trump's scheduled military parade in the capital. Los Angeles protests – Top developments Protests erupted on June 6 in Los Angeles after federal agents detained over 40 migrants in a high-profile immigration enforcement raid. President Trump responded with the deployment of 4,000 National Guard troops and 700 Marines, a move denounced by Mayor Karen Bass and Governor Gavin Newsom, who said 'democracy is under assault.' advertisement Mayor Bass imposed a curfew from 8 p.m. Tuesday to 6 a.m. Wednesday for a one-square-mile zone in downtown LA. Violence, vandalism and looting triggered the measure. Bass also said she would contact President Trump to demand a halt to the raids and to shift focus to the upcoming 2026 FIFA World Cup. After a relatively calm Monday, tensions flared again Tuesday. Police arrested 197 people, which is more than double the weekend's 50 arrests. Clashes included the torching of vehicles, the use of fireworks against police, and looting, including the ransacking of an Apple Store. In nearby Santa Ana, streets were blocked by armored vehicles outside the Civic Center. Protesters clashed with counter-protesters, including Trump supporters. National Guard troops restricted access, while graffiti-covered buildings reflected the city's anger toward ICE. In Washington DC, unions and activists marched past the Department of Justice, demanding the release of detained union leader David Huerta. US Rep. Pramila Jayapal joined protesters, calling out the administration's "sweeping up of innocent people." In Philadelphia, as many as 150 protesters gathered outside ICE offices, obstructed roads using bicycles, and clashed with police after refusing to disperse. Fifteen people were arrested, including one for alleged aggravated assault. Police confirmed injuries to both officers and protesters. After peaceful marches, San Francisco saw vandalism and over 150 arrests. Two officers were injured. While most of the protest remained peaceful, breakaway groups damaged police cars, buses, and buildings. Police said they support free speech but warned that violence would not be tolerated. advertisementOutside Seattle's immigration court, about 50 protesters gathered, chanting and drumming. Activist Mathieu Chabaud said they were demonstrating in solidarity with Los Angeles and calling for ICE's abolition. In New York city, large crowds gathered outside immigration courts, chanting against ICE and questioning the presence of riot police. Multiple arrests were made, though no charges were immediately announced. Chicago protests swelled to over a thousand by Tuesday evening. Demonstrators marched peacefully, publicly denouncing the military presence in Los Angeles. In Boston, hundreds filled City Hall Plaza in support of detained labor leader David Huerta. 'An immigrant doesn't stand between an American worker and a good job, a billionaire does,' said Chrissy Lynch, President of the Massachusetts AFL-CIO. Must Watch IN THIS STORY#United States of America#Donald Trump
India Today
24 minutes ago
- India Today
Trump can't broker peace between his ego and reality, forget about India-Pak ceasefire
Donald J. Trump's White House reality show is in its second season, but the script has gone stale in just about 100 days. No twists, just endless turns and U-turns. The man who dreams of being a dictator finds a humongous rock called the American Constitution in his path. He has Nobel intentions, and he is paving the road to hell with them. Somebody crown him the Universe Peacemaker already. Or if there is one for the Most Creative Self-Sabotage start with his domestic disaster reel. Trump's executive orders keep getting swatted down by courts. The few that limp through deliver results as impressive as his flat Diet Coke. California, the blue bastion, is seeing red as Trump's former stomping ground is literally and figuratively on fire. At the time of writing this piece, the governor has imposed an emergency in LA, and a curfew is in place. The Third World is there to has sent in the National Guard and Marines, going full confrontational with a state he deeply dislikes for being a Democratic den. The governor and Dems aren't budging, and protesters are clashing with law enforcement. Who'll mediate a ceasefire between them? Certainly not the Ceasefire Champion Trump, who can't even broker peace between his ego and Globally, it's a clown show, and we're running out of popcorn. Trump thought his BFF Vladimir would halt the Russia-Ukraine war. For a hot minute, it looked promising. Until Volodymyr, whom Trump once chided like a child in the Oval Office, unleashed a drone swarm that turned multiple Russian aviation assets into scrap metal. Now Putin's gone full mediaeval, and Trump's Nobel dreams are as good as his diplomatic finesse. there's Iran. He tried to bully them into a nuclear deal, only to dangle a carrot and get whacked with a stick. Tehran's mullahs know Trump's bark is louder than his bite in a world that no longer bows to America's faded backstabbed staunch ally Netanyahu to force a ceasefire, only for it to collapse faster than his Taj Mahal in New Orleans. Even Hamas rejected his proposals. Saudi Arabia was quick to stuff his mouth with dollars, and Qatar bribed him, plane and simple, and no typo. The result? Trump shook hands with the Syrian president, who had a US bounty on his head. His lack of scruples is the only consistent thing about him and that has been public knowledge for so long that even Pakistanis heard it. Islamabad set up a crypto council to snare his family-owned crypto enterprise into a deal and the dealmaker fell for it. Trump once called out Pakistan for using terrorism to extort money from the US. The same Trump is going around singing praises for the Pakistani leadership. Art of Deal?advertisementElsewhere, world leaders might trust America, but they look at Trump like a used-car salesman with a shady rap sheet. Unwanted but gotta buy your ride, so bear with the overbearing. Is there an ally Trump hasn't badmouthed since he took over? Canadians have died in America's wars but get treated like the '51st state' — and a blue one at that. He insists on calling the Canadian prime minister a governor. Diplomacy, anyone? Britain and Europe are 'suckers' to the 47th. His mate, VP JD Vance, picks up the slack, hurling insults when Trump's busy. The 'tremendous' tariff war with China? A dud so tremendous, Beijing's Xi must be laughing his way into the South China just one faux feather he flaunts like a peacock: the India-Pakistan ceasefire. A feather that doesn't belong to his cap. Since May 10, 2025, Trump has been crowing that he brokered peace using 'trade like no one's ever used.' His evidence? A tweet from Pakistan's Shehbaz Sharif thanking him. India, the grown-up in the room, didn't even acknowledge his role, leaving Trump 'pissed'. Just because the US was in talks with both warring parties, Trump wants the itching to throw a tantrum at the G7 summit, where he'll likely demand a standing ovation for his unverified heroics. The ceasefire happened because India, uninterested in a fight it didn't start, agreed to Pakistan's plea after the latter got a battering the generals didn't own party is whispering about damage control, praying America's global stature isn't damaged beyond repair. Since the day Trump called his best bud Elon Musk fat, the tech czar's patience has run thin. Now Musk's gunning for impeachment. Trump's alienated allies, botched ceasefires, and turned tariff wars into global eye-rolls. The Norwegians gave Obama a Nobel hoping he would stop America's wars. They should give one to Trump just to shut him with no Doge in this fight, including yours truly, wonder if Trump will even finish this term. Will he course-correct? Don't bet on it. This is a man who'd rather burn the house down than admit he started the fire. The world is watching, popcorn in hand, as Trump's second season lurches toward a finale no one has scripted. Least of all, Trump.(Kamlesh Singh, a columnist and satirist, is director of news with India Today Digital)(Views expressed in this piece are those of the author)Tune InMust Watch
