India and the United States officially decided to postpone a high-level meeting between their chief trade negotiators that was scheduled to begin tomorrow in Washington.
The three-day session (Feb 23–26) was intended to finalize the legal text of the interim trade pact. However, both nations have agreed to reschedule to a “mutually convenient date” to evaluate the massive legal and economic shift caused by the U.S. Supreme Court’s ruling on February 20.
Why the Postponement?
The delay is a strategic “pause” rather than a cancellation. Both sides need to recalculate their leverage in light of the last 48 hours:
- The SCOTUS Impact: The Supreme Court ruled that President Trump’s previous “reciprocal” tariffs (which were as high as 25–50% for India in 2025) were illegal. This has fundamentally changed the “baseline” from which India is negotiating.
- The 15% Pivot: On Saturday, President Trump invoked Section 122 to impose a new, temporary 15% global tariff starting February 24. Negotiators need to determine if the previously agreed “special rate” for India (18%) is still a “deal” if the global baseline is now lower or more legally fragile.
- Internal Reassessment: India’s Commerce Ministry is reportedly studying whether the deal remains “equitable.” Some trade experts suggest India should now push for even lower duties (closer to 10%) since the President’s “emergency” tariff powers have been blunted by the Court.
The Current “Tariff Maze” for India
The negotiation is currently stuck in a rapidly shifting legal landscape:
| Date | Status of U.S. Tariffs on Indian Goods |
| Early Feb 2026 | 25% (Reciprocal duty) |
| Feb 6, 2026 | 18% (Announced in the Modi-Trump Interim Framework) |
| Feb 20, 2026 | 0% (The Supreme Court strikes down the 25% duty as illegal) |
| Feb 24, 2026 | 15% (Trump’s new “Section 122” surcharge takes effect) |
What is at Stake?
Despite the delay, both governments insist the deal is “on track.” The proposed agreement includes:
- Market Access: India would eliminate or reduce tariffs on U.S. agricultural goods (apples, nuts, wine) and industrial machinery.
- The “Energy” Waiver: A critical component for India is a formal waiver of penalties related to its purchase of Russian crude oil.
- The $500B Goal: The deal aims to facilitate $500 billion in bilateral trade over the next five years.
“India has not signed the agreement yet, so there is room for a dialogue. We will wait and see how the U.S. government responds to the ruling.” — Indian Commerce Ministry Official, Feb 22, 2026.
