India US Interim Trade Pact Talks Rescheduled Amid US Tariff Uncertainty

Chief Negotiators’ Meeting in Washington Deferred​

New Delhi, February 22: India and the United States have decided to reschedule the proposed meeting of their chief negotiators that was set to take place in Washington from Monday to finalize the legal text of the interim trade pact.

The Indian delegation, led by Darpan Jain, Joint Secretary in the Commerce Ministry and India’s chief negotiator for the agreement, was scheduled to begin a three day meeting in the US on February 23.

According to Commerce Ministry sources, both sides have agreed that the visit of the Indian Chief Negotiator and the team should be scheduled after each country has had sufficient time to assess the latest developments and their implications. The meeting will now be held on a mutually convenient date.

US Supreme Court Ruling Triggers Fresh Tariff Moves​

The development comes in the backdrop of a significant ruling by the US Supreme Court, which struck down sweeping import tariffs imposed by US President Donald Trump on multiple trade partners.

The court ruled that the tariffs imposed under the International Emergency Economic Powers Act of 1977 were illegal and that the President had exceeded his authority by using the legislation to enforce broad levies on nations worldwide.

Despite the ruling, Trump on Friday imposed a 10 per cent tariff on all countries, including India, from February 24 for a period of 150 days. On Saturday, he announced an increase in tariffs to 15 per cent, up from the 10 per cent declared a day earlier.

If notified, the 15 per cent levy will be over and above existing Most Favored Nation import duties in the US. For example, a product currently attracting a 5 per cent MFN duty would face an additional 15 per cent, taking the effective duty to 20 per cent. Earlier, this had been 5 plus 25 per cent.

There is no clarity yet on what tariff structure will apply to countries such as India after the 150 day period ends.

Existing Tariffs and Interim Deal Framework​

The US had imposed a 25 per cent reciprocal tariff on India in August 2025. Subsequently, an additional 25 per cent duty was introduced over India’s purchase of Russian crude oil, taking the total tariffs on India to 50 per cent.

Earlier this month, India and the US agreed on a framework to finalize an interim trade deal, under which Washington would reduce tariffs to 18 per cent. So far, the punitive 25 per cent has been removed, while the remaining 25 per cent continues.

To sign and implement the first phase of the bilateral trade agreement, the framework must be converted into a legally binding document. The meeting in Washington from February 23 to 26, 2026 was intended to finalize the legal text of the first phase.

Commerce Minister Piyush Goyal had earlier indicated that the deal could be signed in March and implemented in April.

India US Trade Ties: Key Numbers​

During 2021 to 2025, the United States remained India’s largest trading partner in goods.

The US accounts for around 18 per cent of India’s total exports, 6.22 per cent of its imports, and 10.73 per cent of overall bilateral trade.

In 2024 to 25, bilateral trade between India and the US stood at USD 186 billion, including USD 86.5 billion in exports and USD 45.3 billion in imports.

As both sides reassess evolving tariff developments and their implications, the timeline for finalizing the interim India US trade pact now hinges on a rescheduled round of negotiations in Washington.