India and the United States have agreed to reschedule a crucial meeting of their chief trade negotiators, originally set to begin in Washington on Monday (February 23, 2026), aimed at finalising the legal text for an interim bilateral trade agreement, according to government sources.
The three-day talks, involving India's chief negotiator Darpan Jain, Joint Secretary in the Commerce Ministry, and his US counterparts, were intended to convert the recently agreed framework into a binding document. Commerce Minister Piyush Goyal had earlier indicated that the deal could be signed in March and implemented by April.
“With regards to the visit of the Indian team of negotiators to the US for the India-US trade deal, the two sides are of the view that the proposed visit of the Indian Chief Negotiator and the team be scheduled after each side has had the time to evaluate the latest developments and their implications. The meeting will be rescheduled at a mutually convenient date,” Commerce Ministry sources stated.
This postponement follows a dramatic turn in US trade policy. On February 20, 2026, the US Supreme Court ruled in a 6-3 decision that President Donald Trump's sweeping tariffs, imposed under the International Emergency Economic Powers Act (IEEPA) of 1977, were illegal, as the law does not authorise the president to levy tariffs. The ruling struck down broad duties on imports from numerous countries, including those affecting India, marking a significant setback to Trump's economic agenda in his second term.
Also read: India weighing impact of US Supreme Court ruling
In response, Trump imposed a new 10 per cent tariff on imports from all countries, including India, effective February 24 for an initial 150-day period, citing alternative authority under Section 122 of the Trade Act of 1974. On Saturday, he announced an increase to 15 per cent, the maximum allowed under that statute, describing the court's decision as “anti-American” and vowing to press ahead with protectionist measures.
The context is tied to earlier US actions against India. In August 2025, tariffs on Indian goods reached 50 per cent, comprising a 25 per cent reciprocal duty plus an additional 25 per cent linked to India's purchases of Russian crude oil. A framework agreement earlier this month saw the punitive 25 per cent removed, reducing tariffs to 18 per cent in exchange for India's commitment to halt Russian oil imports, among other concessions.
The Supreme Court's invalidation of the IEEPA-based tariffs created uncertainty over the status of these arrangements and the path forward for the interim deal. Both sides now seek time to assess the implications of the ruling and subsequent tariff adjustments before resuming talks.
The US remains India's largest trading partner in goods, accounting for about 18 per cent of India's total exports, 6.22 per cent of imports, and roughly 10.73 per cent of bilateral trade. In 2024-25, two-way trade totalled USD 186 billion (exports USD 86.5 billion, imports USD 45.3 billion).
This calibrated delay underscores the challenges in navigating bilateral trade amid volatile US policy shifts, with both nations prioritising a stable, mutually beneficial agreement despite geopolitical and legal hurdles.
Follow us
