On Tuesday, the Indian Minister of Commerce stated that once the situation becomes clearer, India will restart negotiations on the proposed trade agreement with the United States. A few days ago, certain tariff policies of President Trump were overturned by the Supreme Court, leading to both sides delaying negotiations.
Before Indian Minister Piyush Goyal made these remarks, Trump had warned trading partners not to abandon recent trade agreements reached with the United States after his emergency tariffs were overturned by the Supreme Court. Otherwise, higher tariffs would be imposed on them under different trade laws.
On February 20, the Supreme Court ruled that Trump’s imposition of tariffs under the International Emergency Economic Powers Act (IEEPA) was illegal. Trump then invoked the power granted by Section 122 of the Trade Act of 1974 to announce a 10% temporary tariff on all countries, including India, to replace the equivalent tariffs and fentanyl-related tariffs imposed under the IEEPA.
Trump’s strong push for tariff reform at this time is in line with his commitments to “America First” and “eliminating trade deficits.” He believes that high tariffs can compel trading partners to renegotiate favorable terms for the United States and bring manufacturing back to the country.
In the past year, tariff figures between the U.S. and India have fluctuated several times. On April 2, 2025, the U.S. imposed a 26% equivalent tariff on Indian goods, which was lowered to 25% in July of the same year. In August, due to India’s continued purchases of Russian oil, the U.S. imposed a 25% punitive tariff, resulting in a total tax rate of up to 50% at one point. In early February of this year, the two sides reached a midterm agreement framework, with the U.S. expressing willingness to reduce equivalent tariffs to 18% and lift the 25% punitive tax on Russian oil.
Due to legal changes necessitating a reassessment of the agreement framework, the Indian delegation’s trip to Washington scheduled for last Sunday (February 22) was abruptly canceled.
White House officials emphasized that the President’s determination to implement tariffs “has not changed.”
U.S. Trade Representative Jamieson Greer stated on the February 22 broadcast of ABC’s “This Week” program that the Trump administration will use other legal tools to reshape trade policy, including Sections 301 and 232, both of which have withstood legal challenges.
(This article was referenced from reports by Reuters and the Economic Times)