India-US Trade Deal on Hold Until Washington Updates Tariff Rules, Officials Say
India-US trade deal will be signed after US finalizes new tariff framework, following recent court ruling.
India’s proposed interim trade agreement with the United States will be signed only after Washington finalises a new global tariff structure, a senior government official said on March 16. The delay follows a US Supreme Court ruling earlier this year that struck down President Donald Trump’s executive powers to impose broad duties under the International Emergency Economic Powers Act (IEEPA).
“We are still working on the finer details of the deal, but any signing will happen only after their new tariff architecture is ready. There is no stand-off on the deal,” the official added, speaking on condition of anonymity.
Also Read: From Washington To Raj Niwas: Taranjit Singh Sandhu Becomes Delhi’s New Lieutenant Governor
The trade pact had initially been expected to be signed in March. However, the Supreme Court ruling invalidated earlier reciprocal tariffs, prompting the Trump administration to work on a revised tariff framework for global trade. Negotiations between the two countries are continuing in parallel to address outstanding issues, including non-tariff barriers and sectoral tariffs imposed under Section 232.
For the time being, the US has implemented temporary 10 percent tariffs under Section 122 of the Trade Act of 1974, which will remain in place for up to five months. These interim measures are intended to maintain some level of trade regulation while the new tariff structure is finalised.
The Indian government has emphasised that any trade agreement will need to be structured in a way that accounts for the tariff system and preserves India’s comparative advantage in the US market. “Any deal that we finalise and sign has to be against a tariff structure or the comparative advantage that India gets in the US market,” the official said.
Talks between New Delhi and Washington are ongoing, focusing on refining the details of the agreement, resolving sector-specific tariffs, and ensuring that India’s key export sectors are protected under the new framework. Both sides remain committed to completing the deal once the US tariff architecture is ready.
Also Read: Kharge & Rahul Gandhi to Lead Farmers' Protest in Bhopal Over India-US Trade Deal
