India-US trade talks: Negotiators meet in Washington scheduled for next week postponed

India and the United States have decided to reschedule a key round of trade negotiations in Washington, delaying efforts to finalise the text of an interim bilateral trade pact, sources said on Sunday.  

The Indian negotiating team had been scheduled to begin a three-day meeting on February 23. However, both sides now believe discussions should take place only after evaluating recent developments and their implications for the proposed agreement.  

Quoting a source, PTI reported that the visit of the Indian Chief Negotiator and delegation will be scheduled later at a mutually convenient date once both governments complete internal assessments.  

The postponement news comes after US President Donald Trump sharply escalated his tariff push, raising the previously announced 10 percent baseline levy on imports to 15 percent with immediate effect.  

The move effectively brings overall tariff exposure on India to about 18.4 percent when the Most Favoured Nation (MFN) rate is included, signalling a renewed hardening of Washington’s trade stance even as both countries attempt to negotiate relief.  

The administration did not specify which countries would be most affected by the higher rate or detail the precise legal mechanism used, but described the increase as “fully allowed, and legally tested.”  

Legal setback adds to uncertainty  

The revised tariff follows a major judicial setback after the US Supreme Court ruled that sweeping global levies imposed under the International Emergency Economic Powers Act (IEEPA) of 1977 were illegal, stating that the president had exceeded his authority.  

This ruling has injected additional uncertainty into the trade environment, complicating ongoing negotiations with multiple partners.  

Trade tensions between the two countries have seesawed over the past year. In August 2025, Washington imposed a 25 percent reciprocal tariff on New Delhi. A further 25 percent duty linked to India’s purchase of Russian crude pushed the cumulative burden to 50 percent.  

Earlier this month, the two sides agreed on a framework for an interim arrangement under which tariffs would be reduced to roughly 18 percent. While the punitive 25 percent component has since been removed, another 25 percent duty remains, leaving the final contours of the deal unresolved.

Commerce and industry minister Piyush Goyal on February 21 said that the interim trade deal between India and the US is likely to be signed next month and would become effective from April 2026.