India-US Trade Deal Delayed Awaiting New Tariff Regime

India will sign its interim trade agreement with the United States only after a new tariff framework is finalised by Washington, following a ruling by the US Supreme Court that scrapped earlier reciprocal tariffs imposed under the International Emergency Economic Powers Act. A temporary 10% duty under Section 122 of the Trade Act of 1974 is currently in place, and officials said the final deal will depend on how India’s trade advantage fits into the revised structure. Though the agreement is largely ready in principle, its signing has been pushed back until clarity emerges.

Talks between both sides are ongoing to settle key issues like non-tariff barriers and certain sectoral duties, with Rajesh Agrawal confirming continued engagement for a balanced outcome. India has not signed a legal pact yet – unlike Malaysia, which exited its deal after tariff changes – giving it flexibility. Meanwhile, some trade impact is expected due to tensions in West Asia, but the government still aims to maintain export growth this fiscal year.