NEW DELHI : A major legal setback has clouded Washington’s latest trade offensive against India, even as hefty new tariffs take hold.

Earlier this week, the United States imposed a steep 50% duty on a wide range of Indian goods. But a federal appeals court has now ruled that most of former President Donald Trump’s tariff actions, carried out under the International Emergency Economic Powers Act (IEEPA), lack legal standing. The judges stressed that tariff-making authority rests with Congress, and said it was improbable that lawmakers intended to hand the White House unchecked power through IEEPA.

The ruling, however, stops short of offering immediate relief. The contested tariffs remain in effect until October 14, giving the administration time to escalate the matter to the Supreme Court.

Two layers of U.S. duties on India are now under the legal microscope: a 25% reciprocal tariff introduced earlier, and another 25% penalty linked to New Delhi’s oil imports from Russia. Both were enacted under IEEPA.

Notably, the decision does not affect tariffs imposed through Section 232 of the Trade Expansion Act, which Washington invoked to raise levies on steel and aluminum to 50%. Those duties, including the latest ones targeting India, continue without disruption.

For Indian exporters, the ruling presents a complicated landscape: while the tariffs remain painfully in force, their long-term validity is now in question.