Trade negotiations between India and the United States have been deferred, as both sides assess the implications of a ruling by the Supreme Court of the United States that struck down global tariffs imposed by President Donald Trump, an Indian Commerce Ministry official told BBC.
An Indian delegation had been scheduled to travel to Washington this week to finalise the terms of an interim trade agreement announced earlier this month. Under that deal, US tariffs on Indian goods were to be reduced from 50% to 18%, although several elements remained unresolved.
However, the Supreme Court ruling has introduced fresh uncertainty, particularly after Trump announced plans to impose a new blanket 15% tariff on all goods entering the US. It remains unclear how the court decision and the proposed tariffs will affect existing or pending trade agreements with other countries.
The developments follow months of disruption for Indian exporters, who have been grappling with 50% tariffs introduced by the Trump administration on August 27, including penalties linked to India’s purchase of Russian oil.
On February 2, Trump said an interim trade deal had been reached following a phone call with Indian Prime Minister Narendra Modi, easing pressure on Indian markets. Under the agreement, India committed to lowering tariffs on US industrial goods and several agricultural products, while the US agreed to cut reciprocal tariffs on around 55% of Indian exports.
The announcement also sparked domestic debate in India, particularly among farm unions concerned that cheaper US agricultural imports could hurt local producers. India’s Commerce Minister Piyush Goyal later said New Delhi had not offered concessions on dairy, genetically modified products, meat or poultry, and stressed that safeguards for farmers remain in place.
Despite this, analysts are still awaiting clarity on the final terms of the agreement, including whether India pledged to reduce Russian oil purchases and whether it could realistically meet a target of importing $500 billion worth of US goods over five years.
Goyal had said last week that the deal could take effect in April following further discussions in Washington. That timeline has now been disrupted by Friday’s Supreme Court ruling, which found Trump had exceeded his authority by using the 1977 International Emergency Economic Powers Act to impose sweeping global tariffs.
Uncertainty deepened further over the weekend after Trump announced plans to raise global tariffs to 15%, citing alternative legal provisions.
“The two sides have decided to defer the talks until both sides are able to study the implications of recent developments,” the Commerce Ministry official told the BBC.
Meanwhile, Reuters reported, citing an unnamed source, that no new date has yet been set for the Indian delegation’s visit, which had been due to begin on Sunday.
