The Government of India will sign the India–US trade deal only after the new tariff framework comes into effect, Commerce Secretary Rajesh Agrawal said on Monday during a trade data briefing. He stated that officials will finalise the agreement once United States restores global tariff rates following a court ruling that struck them down.
Last month, the Supreme Court of the United States struck down the reciprocal tariffs imposed during the administration of Donald Trump. Soon after the ruling, Trump signed an executive order ending certain tariff actions and introduced a 10% temporary import surcharge as ad valorem duties on goods entering the US. Later, he announced an increase in the levy to 15% through a social media post.
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According to Agrawal, New Delhi is currently holding detailed discussions with Washington, D.C. to finalise the terms of the proposed trade agreement.
Meanwhile, the Trump administration has attempted to restore tariff pressure after the Supreme Court’s decision. The Office of the United States Trade Representative recently launched a Section 301 investigation under the Trade Act of 1974 into alleged unfair manufacturing practices by India and 15 other major economies. The probe could allow the US government to impose new tariffs, restrict imports, or suspend trade agreement concessions if it finds unfair trade practices.
Apart from negotiations with the US, the Indian government is also working to expand its global trade partnerships. Officials are currently negotiating six Free Trade Agreements (FTAs) with several countries and regional groups, including Australia, Sri Lanka, Peru, Chile, the Eurasian Economic Union, and Israel, according to a report by Asian News International.
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