India and the United States have decided to postpone a crucial meeting of their chief negotiators scheduled to finalise the text of a proposed interim trade pact. The decision comes amid significant uncertainty in U.S. trade policy triggered by a recent Supreme Court ruling invalidating key tariff measures imposed by the Trump administration.
The three-day talks, set to begin on February 23 in Washington with India’s chief negotiator, Joint Secretary in the Commerce Ministry Darpan Jain, leading the delegation, have been deferred. Government sources from both sides confirmed the rescheduling, stating that the move allows time to assess the implications of recent developments.
“With regards to the visit of the Indian team of negotiators to the U.S. for the India-U.S. Trade Deal, the two sides are of the view that the proposed visit of the Indian Chief Negotiator and the team be scheduled after each side has had the time to evaluate the latest developments and their implications. The meeting will be rescheduled at a mutually convenient date,” a source familiar with the matter told PTI.
The postponement directly follows the U.S. Supreme Court’s landmark 6-3 decision on February 20, which ruled that the International Emergency Economic Powers Act (IEEPA) does not authorise the President to impose broad tariffs. The ruling struck down sweeping “emergency” tariffs that had been a cornerstone of President Donald Trump’s trade strategy, including measures affecting global partners like India.
In response, Trump swiftly imposed a new 10% global tariff on imports from all countries—including India, effective February 24 for a 150-day period under Section 122 of the Trade Act of 1974. He later announced an increase to 15%. This shift has created volatility in ongoing bilateral negotiations.
Earlier this month, India and the U.S. reached a framework for an interim trade deal. Under the arrangement, the U.S. agreed to reduce tariffs on key Indian exports (such as clothing, pharmaceuticals, textiles, and precious stones) to 18% from higher previous levels, while India committed to lowering or eliminating duties on various U.S. industrial and agricultural goods. The deal also addressed concerns like India’s purchases of Russian oil.
The Supreme Court ruling and subsequent U.S. actions have complicated this framework. For India, the blanket global tariff is now 15%, potentially altering the negotiated 18% rate and providing temporary relief for some exporters compared to prior higher duties. However, the legal and policy flux has prompted both sides to pause for re-evaluation.
The interim pact aimed to serve as a stepping stone toward a broader bilateral trade agreement, addressing long-standing issues like market access, tariffs, and non-tariff barriers amid strained global trade dynamics.
