The signing of the India-US trade agreement will occur only after a revised US tariff framework is established, Commerce Secretary Rajesh Agrawal confirmed on Monday during a trade briefing. Agrawal explained that the finalisation of the deal depends on Washington restoring global tariff rates following a court ruling that had invalidated previous measures.
“Each country approaches the deal with its own comparative advantages relative to competitors,” Agrawal added, as reported by PTI.
India and the US had recently announced a framework for the first phase of their bilateral trade pact, under which the US agreed to reduce tariffs on Indian goods to 18 per cent. However, a Supreme Court ruling against President Donald Trump’s broad tariff policies led to a temporary 10 per cent tariff on imports from all countries, effective February 24 for 150 days, altering the previously agreed structure.
Due to these developments, the meeting of chief negotiators to finalise the legal text of the agreement has been postponed. Agrawal said New Delhi continues discussions with Washington to work out the details before moving forward with signing the pact.
Meanwhile, the Trump administration has revived tariff scrutiny following the Supreme Court ruling. The US Office of the Trade Representative announced a Section 301 investigation into alleged unfair manufacturing practices by India and 15 other major economies. The probe could result in new tariffs, import restrictions, or suspension of trade concessions against countries found to be engaging in unfair trade practices.
In addition to the US deal, India is negotiating six Free Trade Agreements (FTAs) to expand trade partnerships. Talks are ongoing with Australia, Sri Lanka, Peru, Chile, the Eurasian Economic Union (EAEU), and Israel, according to ANI reports. These efforts form part of India’s broader strategy to strengthen international trade ties amid changing global tariff policies.
