India and US Trade Negotiations on Hold Amid Tariff Uncertainty

Union Commerce Minister Piyush Goyal has stated that trade negotiations between India and the US will be paused until there is more clarity on recent tariff changes by the US. The postponement follows a Supreme Court ruling that struck down tariffs imposed by former President Trump. This decision has left the status of ongoing trade agreements uncertain, particularly concerning India. Goyal's remarks highlight the complexities of international trade relations and the impact of domestic legal decisions on global commerce. As both nations navigate these challenges, the future of their trade relationship remains in question.

By Narendra Chaudhary Feb 25, 2026, 13:14 IST

Trade Talks Between India and the US Delayed

On Tuesday, Union Commerce Minister Piyush Goyal announced that discussions regarding an interim trade agreement between India and the United States will recommence once there is greater clarity on the recent tariff changes made by the US government.

Goyal made these comments during an event in Delhi, following the decision to postpone a three-day meeting originally scheduled to start on Monday. This meeting was intended for officials to finalize the legal framework of the trade deal.

The postponement occurred after the US Supreme Court ruled against the global tariffs imposed by former President Donald Trump, declaring in a 6:3 decision that he had overstepped his authority.

The court stated that the 1977 International Emergency Economic Powers Act, which Trump had cited, does not grant the president the power to impose tariffs.

In April, Trump had enacted tariffs on numerous countries, including India, in response to high tariffs those nations had placed on American products.

These tariffs were later reduced following the establishment of bilateral trade agreements, including one with India.

On February 2, India and the US had reached a preliminary agreement that aimed to lower US tariffs on Indian goods from a combined rate of 50% to 18%. This initial rate included a punitive 25% tariff imposed in August due to India's purchase of Russian oil.

After the Supreme Court's ruling, Trump criticized the decision as 'ridiculous' and 'poorly written.' He subsequently announced a temporary 10% tariff on imported goods, citing his authority under the 1974 Trade Act.

This new tariff will be in effect for a maximum of 150 days unless Congress approves an extension, leaving the status of recent trade agreements, including those with India, uncertain.

Additionally, Trump indicated that he would be raising global tariffs from 10% to 15% immediately, although it remains unclear when this increased rate will take effect.

On Saturday, Trump warned that further tariffs could be implemented. Regarding India, he stated that the current tariff situation would remain unchanged, asserting that India would continue to pay tariffs while the US would not.

In response, India's commerce ministry announced it is currently assessing the implications of the US Supreme Court's decision on tariffs and its potential effects on India.