Tensions in international trade have prompted India and the US to reschedule high-stakes negotiations on an interim bilateral agreement. The decision comes hot on the heels of a bombshell US Supreme Court verdict invalidating President Trump’s tariff strategy, followed by his aggressive counter-move to raise duties.
Scheduled for a three-day session starting February 23 in the US capital, the talks involved lead negotiators from both countries. But with the court on Friday nullifying key tariff impositions in a 6-3 ruling, citing violations of constitutional limits under the IEEPA, the landscape shifted dramatically. The justices argued that emergency powers couldn’t justify blanket import taxes on goods worldwide.
President Trump, undeterred, fired back on Truth Social. He bumped global tariffs to 15% from 10%, blasting the decision as ‘ridiculous, poorly written, and extremely anti-American.’ During a governors’ meeting, he called it a ‘disgrace’ but hinted at backup plans to protect US interests.
From New Delhi’s perspective, prudence dictates delay. A top official confirmed the Indian delegation’s Washington trip is off for now. ‘We need time to assess the Supreme Court’s impact and the tariff adjustments,’ the source said. Both parties are committed to reconvening at a suitable time, ensuring the interim trade pact reflects the latest realities.
This episode highlights how domestic US politics can ripple across global partnerships. For India, balancing relations with America while safeguarding its export-driven economy remains paramount. As new dates emerge, the world awaits whether this setback strengthens or derails the burgeoning trade ties.