New Delhi: India and the United States have decided to reschedule the meeting of their chief negotiators for the proposed interim trade deal, sources said, according to a PTI report.
The Indian team was earlier scheduled to visit Washington from February 23 for a three-day discussion to finalise the legal text of the first phase of the agreement. Joint Secretary in the Commerce Ministry, Darpan Jain, is India’s chief negotiator for the pact.
Sources said both sides felt they need more time to study the latest developments and their impact before holding the meeting. A new date will be fixed at a mutually convenient time.
Impact of US Court Ruling and Tariffs
The decision comes after major changes in US trade policy. The Supreme Court of the United States ruled that sweeping tariffs imposed earlier by US President Donald Trump under the International Emergency Economic Powers Act (IEEPA) were illegal.
After the verdict, Trump announced a 10 per cent tariff on all countries, including India, for 150 days starting February 24. A day later, he raised the rate to 15 per cent.
Earlier, the US had imposed a 25 per cent reciprocal tariff on India in August 2025 and an additional 25 per cent duty linked to India’s purchase of Russian crude oil, taking total tariffs to 50 per cent.
What Happens to the Interim Deal?
Earlier this month, both countries agreed on a framework under which US tariffs on India were expected to be reduced to 18 per cent. The earlier 25 per cent punitive tariff was removed, but another 25 per cent duty still remains.
The newly announced 15 per cent tariff will be over and above the existing import duties. For example, if a product has a 5 per cent duty, the effective rate could become 20 per cent.
Commerce Minister Piyush Goyal had earlier said the deal may be signed in March and implemented in April.
The US remains India’s largest trading partner, with bilateral trade at USD 186 billion in 2024-25.
