A US trade court blocked President Trump's tariffs, stating he exceeded his authority. This decision positively impacted global stock markets, with Japan's Nikkei and Korea's Kospi rising 2%. Indian benchmark Sensex initially surged over 500 points but later erased gains.

India is reviewing the impact of a US court ruling that blocks President Donald Trump from imposing sweeping tariffs on imports, sources said. The US court found the 1977 International Emergency Economic Powers Act, which Trump has cited as his basis for ordering massive increases in import duties, does not authorise the use of tariffs.

India has reportedly offered the US steep tariff cuts but is seeking to retain high duties on some agricultural commodities, such as food grains and dairy products, according to a report in the FT on Wednesday.

Weeks before India and the US were due to sign an interim trade deal to meet the July 8 deadline for reciprocal tariffs, the US Court of International Trade on Wednesday ruled that President Donald Trump does not have the authority to regulate imports into the US through tariffs under the International Emergency Economic Powers Act (IEEPA).

President Trump’s threat to impose big charges — including 50 percent on the European Union — was in question after judges blocked his across-the-board levies.

India has offered “deep” cuts to its import tariffs on a swath of goods in talks with the US, but is seeking to retain its high levies on sensitive agricultural commodities such as foodgrains and dairy products,

Following a US court's ruling against US President Donald Trump's tariffs, Indian experts recommend that New Delhi reassess its trade strategy with Washington, cautioning against making concessions without reciprocal commitments.

The Indian rupee weakened on Thursday, weighed down by a broad rebound in the dollar after a U.S. federal court blocked most of President Donald Trump's "reciprocal tariffs" from taking effect.