A three-judge panel at the US Court of International Trade will consider lawsuits filed by 24 mostly Democratic-led states and two small businesses seeking to block the tariffs, which took effect on February 24.

The plaintiffs contend the policy sidesteps a decision by the US Supreme Court that struck down a broad set of earlier tariffs imposed under the International Emergency Economic Powers Act.

The Trump administration has defended the tariffs as a lawful response to persistent trade imbalances, arguing that the United States’ long-standing deficit importing more goods than it exports justifies emergency measures.

The tariffs were enacted under Section 122 of the Trade Act of 1974, which permits duties of up to 15% for a limited period in cases of significant balance-of-payments deficits or to prevent a sharp depreciation of the U.S. dollar.

Plaintiffs argue that the provision is intended for short-term monetary crises and does not apply to routine trade deficits, which they say do not meet the statutory threshold.The legal dispute marks a further test of executive authority over trade policy, an area traditionally involving congressional oversight.

Trump has made tariffs a central element of his economic and foreign policy agenda in his second term, asserting broad unilateral powers to impose import duties.

The case follows a February 20 ruling by the Supreme Court that invalidated many of Trump’s earlier tariffs under the International Emergency Economic Powers Act, finding that the statute did not grant the authority he had claimed.

The current lawsuits do not challenge other tariffs imposed under more conventional legal frameworks, including duties on steel, aluminum and copper imports.

The warning comes as talks between the two countries remain unresolved, with Washington signaling growing impatience over India’s continued engagement with Russian energy supplies despite Western sanctions linked to the Ukraine conflict.

Speaking to reporters during recent travel, Trump indicated that the United States has the ability to raise tariffs quickly, suggesting that trade measures could be used as leverage to influence India’s energy sourcing decisions.

India has emerged as one of the largest buyers of discounted Russian oil in recent years, a strategy that has helped it manage inflationary pressures and ensure energy security amid volatile global markets.

However, the U.S. administration views these purchases as indirectly supporting Moscow’s war effort, and senior American lawmakers have echoed calls for tougher action against countries that continue buying Russian crude.

Some Indian exports already face steep duties in the U.S. market, with total tariffs reaching as high as 50 percent on certain goods, partly linked to concerns over Russian oil imports, according to trade analysts.

Financial markets in India reacted cautiously to the latest signals, with technology stocks declining as investors weighed the risk of prolonged trade friction and further delays to a long-anticipated bilateral trade agreement.

U.S. officials have argued that sanctions and tariff threats have already reduced India’s reliance on Russian oil, though Indian refiners continue limited purchases to balance cost considerations and supply stability.

Trade experts warn that India’s careful diplomatic balancing act may no longer be sufficient, as Washington appears to be pushing for clearer commitments rather than incremental adjustments or quiet reductions.

Analysts note that even a complete halt to Russian oil imports may not fully ease U.S. pressure, as trade demands could shift toward market access, digital trade rules, or industrial subsidies.

From India’s perspective, policymakers remain cautious about setting precedents that could constrain strategic autonomy, particularly in energy sourcing and foreign policy decision-making.

At the same time, India is seeking to preserve strong economic ties with the United States, one of its largest export markets, especially for pharmaceuticals, information technology services, and engineering goods.

Despite the tariff challenges, Indian exports to the U.S. have shown resilience in recent months, though overall shipments have fluctuated amid global demand uncertainty and trade policy risks.

To address U.S. concerns, Indian authorities have reportedly increased monitoring of oil import data, including more frequent disclosures of purchases from Russia and alternative suppliers such as the United States.

Diplomatic engagement between New Delhi and Washington has continued at senior levels, with multiple high-level conversations aimed at preventing further escalation while keeping the door open for compromise.

The situation highlights the complex intersection of geopolitics, energy security, and trade policy, where economic decisions are increasingly shaped by strategic alliances and global power shifts.

As both sides weigh their next steps, businesses and investors are bracing for continued uncertainty, with tariff policy emerging as a key variable in the future of U.S.-India economic relations.