India-US Trade Talks Delayed After 15% Tariff Move

India and the United States have postponed a scheduled meeting between their chief trade negotiators as both sides assess recent changes in US tariff policy.

Government sources said the talks, which were expected to take place in Washington this week, will now be held on “mutually convenient dates” after reviewing the latest developments.

Interim Trade Deal Under Review

The meeting was aimed at finalising the legal text of a proposed interim bilateral trade agreement.

The Indian delegation was to be led by chief negotiator Darpan Jain, with discussions planned with US Trade Representative Jamieson Greer.

The postponement comes after US President Donald Trump increased global tariffs to 15 per cent. Earlier, he had announced a 10 per cent tariff following a US Supreme Court ruling that questioned his authority to impose certain sweeping import duties.

Tariff Framework Details

Under the proposed interim framework, India has reportedly agreed to reduce tariffs on a majority of items. In return, the United States would lower its reciprocal tariffs to 18 per cent on Indian exports.

However, sector-specific tariffs of 50 per cent on products such as iron and steel, copper, aluminium, automobiles and auto parts are expected to remain.

President Trump has stated that the India trade deal remains “on track,” adding that the interim tariff structure would continue to apply.

Supreme Court Ruling Impact

The US Supreme Court, in a 6–3 decision, ruled that the administration had exceeded its authority under the International Emergency Economic Powers Act of 1977 in imposing broad import tariffs. The court held that tariff powers primarily rest with the US Congress.

Following the judgment, President Trump introduced new tariff measures under Section 122 of the Trade Act of 1974, including the 15 per cent global rate.

Indian officials said they are closely monitoring how the US administration responds to the court’s ruling. One official indicated that since the interim agreement has not yet been formally signed, there may be room for further dialogue.

Next Steps

Earlier this month, President Trump and Prime Minister Narendra Modi had announced that they had reached an understanding on a bilateral trade framework.

According to the proposed arrangement, the US would impose an 18 per cent tariff on Indian exports under the interim structure, while tariffs on US exports to India would be reduced significantly.

With the agreement still unsigned, both sides are expected to evaluate the implications of the new US tariff announcement before resuming formal negotiations.