India and the US Postpone Key Trade Meeting
India and the United States have chosen to delay their upcoming meeting between chief trade negotiators in Washington, which was set to begin on February 23. The aim of this three-day meeting was to finalize the trade agreement text. Darpan Jain, the Joint Secretary in the Commerce Ministry, was slated to lead the discussions.
Sources from the Commerce Ministry mentioned that both countries feel they need more time to assess the legal and economic impacts of a recent US Supreme Court decision. This decision has raised concerns about the authority of the US President in imposing tariffs on trade partners.
“The Indian negotiation team’s visit to the US for the trade deal will be rescheduled once both sides have evaluated the latest developments and their implications,” sources stated.
The Supreme Court’s 6-3 ruling determined that the President exceeded his powers under the International Emergency Economic Powers Act of 1977 when enforcing extensive tariffs.
In response to the ruling, President Trump recently announced an increase in tariffs on all countries to 15 percent, up from the 10 percent previously announced. Last year, the US shifted away from its Most Favored Nation (MFN) trade rates to a reciprocal tariff system. This shift included imposing a 25 percent tariff in August 2025, with an additional 25 percent added due to issues surrounding Russian oil purchases.
Earlier this month, India and the US reached an interim trade deal, lowering reciprocal tariffs from 50 percent to 18 percent. The newly announced 15 percent tariff will act as an extra charge on top of the existing tariffs in the US, which is currently at 3.5 percent for 150 days, unless Congress decides to make any changes.
