When will India-US trade deal be signed?
What's the story
India's trade deal with the US will be finalized once America reinstates its global tariff rates, Commerce Secretary Rajesh Agrawal said today. The statement comes after US President Donald Trump's attempts to create a global tariff architecture were thwarted by the Supreme Court's decision against his policy. The bilateral trade agreement negotiations started in February 2025 under PM Narendra Modi and Trump.
Tariff reduction
Interim trade agreement struck down by Supreme Court
The interim trade agreement between India and the US, agreed earlier this year, had seen a significant reduction in tariffs. Under the deal, Trump cut trade tariffs on India from 25% to 18%, while also removing an additional 25% tariff levied due to India's purchase of Russian oil. However, this policy was later struck down by the US Supreme Court under the International Emergency Economic Powers Act (IEEPA) law.
Signing conditions
Deal to be signed once US completes global tariff architecture
Agrawal clarified that any deal India signs will be against a tariff structure. He said, "The US is trying to recreate a tariff architecture globally. Once US creates that, it will be better to sign then." This means the actual signing of the trade deal would depend on when the US completes its global tariff architecture.
Tariff imposition
Trump's new universal tariff amid ongoing geopolitical uncertainties
After the Supreme Court's ruling against his tariff policy, Trump had announced a new universal tariff of 10% for "reciprocity" under a different statutory authority. He also launched investigations that could lead to country-by-country tariffs. The step comes amid ongoing geopolitical uncertainties due to the conflict in the Middle East.
Investigation impact
India assessing legal implications of US's investigations
India is currently assessing the legal implications of the US's new investigations into excess industrial capacity among trading partners. The probe, which targets major economies such as India, China, EU, Japan, South Korea and Mexico, could result in new tariffs as early as this summer.