India-US Trade Pact: Safeguards Ensure Lower Tariffs Amidst Policy Shifts, Legal Challenges

• India has likely included safeguards in its trade agreement with the US to maintain lower reciprocal tariffs.
• These protections aim to shield the agreement from future policy changes or impending legal decisions, such as those related to President Trump's tariff regime.
• The US Supreme Court is currently reviewing challenges to the legality of Trump's broad tariff authority under the International Emergency Economic Powers Act (IEEPA).
• President Trump announced the trade deal on Truth Social, claiming US tariffs on Indian goods would drop to 18% from 50%, and duties on American products in India would fall to zero.
• This initial "framework agreement" is the first step towards a broader Bilateral Trade Agreement (BTA), with a joint statement expected this week.