US Commerce Secretary's Visit to India: Strengthening Trade Relations Amid Legal Challenges

Amidst rising legal and diplomatic pressures regarding US tariff policies, US Commerce Secretary Howard Lutnick made a swift visit to India today. In New Delhi, he engaged in crucial discussions with Indian Commerce and Industry Minister Piyush Goyal. The meeting also included the presence of US Ambassador to India, Sergio Gor. They explored various aspects aimed at enhancing the trade and economic partnership between India and the United States.

Piyush Goyal shared insights about the meeting on the social media platform X, describing the discussions as highly constructive. Both parties exchanged positive views on strengthening their trade relations. Ambassador Sergio Gor echoed this sentiment, labeling the meeting as a significant step for collaboration between the two nations.

This meeting comes at a critical time as India and the US are finalizing the legal draft of the first phase of their bilateral trade agreement. A meeting of chief negotiators from both countries was scheduled in Washington this week to formalize the interim agreement. However, the recent ruling by the US Supreme Court, which invalidated President Donald Trump's extensive tariff orders, has introduced new complexities. The court deemed these tariffs, imposed under the International Emergency Economic Powers Act of 1977, illegal, delivering a blow to the trade policy of the Trump administration.

Following the court's decision, the US government announced a 10% tariff on all countries for a period of 150 days, with indications that this could rise to 15%. However, no official order has been issued yet regarding this increase.

Just a day prior, President Trump vigorously defended his tariff agenda during his State of the Union address, while the Supreme Court's ruling has deepened uncertainty surrounding global trade agreements. This situation raises questions about bilateral agreements previously established under emergency provisions. Experts suggest that if the US administration intends to restructure tariffs under provisions like Section 301, it will need to undergo a formal investigation process, potentially complicating and prolonging negotiations. Trump has also warned all nations that attempts to exploit the situation for bargaining could lead to higher tariffs.

In August 2025, the US imposed a 25% retaliatory tariff on India. An additional 25% tariff was added due to India's purchase of crude oil from Russia, raising the total tariff to 50%. This situation increased pressure on Indian exporters and heightened concerns about trade imbalances. In early February of this year, both countries had agreed on a framework for an interim trade agreement, which included reducing US tariffs from 50% to 18%. In return, India indicated plans to purchase $500 billion worth of US products over five years.

The goal of this agreement was to formalize the first phase and continue discussions towards a broader bilateral trade agreement. However, following the recent court ruling, India has postponed its delegation's trip to Washington. Nevertheless, the Modi government has clarified that there will be no reconsideration of the agreement.

Analysts believe that in light of the new circumstances, India may seek protective measures against potential unilateral or judicial interventions. Additionally, it will strive to maintain trade relations with the US while balancing its energy and domestic economic interests. Recently, Finance Minister Nirmala Sitharaman commented that it is premature to assess the full impact of the court's ruling, indicating that the government is carefully evaluating all aspects to protect commercial interests while maintaining balance in bilateral relations.

Ultimately, the recent meeting between Piyush Goyal and Lutnick suggests that both countries wish to keep the dialogue open amid an unstable global trade environment. Despite tariff disputes, judicial interventions, and domestic political priorities, both sides appear eager to advance towards broader economic cooperation. In the coming weeks, it will become clearer how the interim agreement will progress under the revised circumstances following the US court's decision. For now, the positive dialogue between the two nations indicates a shared desire to strengthen their strategic and economic partnership.