India, US reschedule chief negotiators’ meet amid tariff uncertainty

Metro India News | NEW DELHI

India and the United States have decided to reschedule the proposed meeting of their chief negotiators aimed at finalising the legal text of the interim bilateral trade agreement, sources in the Commerce Ministry said on Sunday. The Indian delegation was scheduled to begin a three-day round of talks in Washington from February 23 to 26, but both sides have agreed to defer the visit to a mutually convenient date.

Joint Secretary in the Commerce Ministry, Darpan Jain, is India’s chief negotiator for the agreement. According to official sources, the two countries felt that it would be prudent to allow time to evaluate the latest developments and their implications before proceeding with the drafting and finalisation of the interim pact. The meeting will now be held after both sides complete their internal assessments.

The postponement comes against the backdrop of significant developments in US trade policy. In a major setback to President Donald Trump’s economic agenda in his second term, the US Supreme Court ruled that sweeping import tariffs imposed by the administration on various countries were illegal. The court held that the President had exceeded his authority by invoking the International Emergency Economic Powers Act (IEEPA) of 1977 to justify the imposition of broad-based tariffs.

Despite the ruling, Trump announced a 10 per cent tariff on imports from all countries, including India, for a 150-day period starting February 24. A day later, he increased the rate to 15 per cent. If notified, this tariff will be levied over and above the existing Most Favoured Nation (MFN) import duties in the US. For instance, if a product currently attracts a 5 per cent MFN duty, the additional 15 per cent levy would raise the effective duty to 20 per cent. Earlier, similar calculations were based on a 25 per cent additional tariff.

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

Earlier this month, India and the US agreed on a framework to conclude an interim trade deal, under which Washington was expected to reduce tariffs to an overall 18 per cent. The punitive 25 per cent tariff has already been withdrawn, while the remaining 25 per cent is still in place.

Commerce Minister Piyush Goyal had indicated that the first phase of the bilateral trade agreement could be signed in March and implemented in April, subject to finalisation of the legal text.

During 2021-25, the US remained India’s largest trading partner in goods. In 2024-25, bilateral trade stood at USD 186 billion, comprising USD 86.5 billion in exports and USD 45.3 billion in imports. 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.