Breaking Update: Here’s a clear explanation of the latest developments related to Breaking News:India-US trade deal: Chief negotiators’ meet on interim pact rescheduled– What Just Happened and why it matters right now.
With regards to the visit of the Indian team of negotiators to the US for the India-US Trade Deal, the two sides are of the view that the proposed visit of the Indian Chief Negotiator and the team be scheduled after each side has had the time to evaluate the latest developments and their implications.
The meeting will be rescheduled at a mutually convenient date,” PTI reported quoting a source.
Also Read: India must reassess US trade deal as Trump tariffs lose bite after Supreme Court ruling
US President Donald Trump on Saturday announced raising tariffs on all countries to 15 per cent from 10 per cent announced a day earlier. In a major setback to Trump’s pivotal economic agenda in his second term, the US Supreme Court ruled that the tariffs imposed by Trump on nations around the world were illegal and that the president had exceeded his authority when he imposed the sweeping levies by using the International Emergency Economic Powers Act (IEEPA) of 1977.
The US had imposed a 25 per cent reciprocal tariff on India in August 2025. Later, an additional 25 per cent duty was imposed for buying Russian crude oil, taking the total tariffs on India to 50 per cent. India and the US, earlier this month, agreed on a framework to finalise an interim trade deal, under which Washington will cut down the tariffs to 18 per cent. So far, the punitive 25 per cent has been removed. The remaining 25 per cent exists.
Following the Supreme Court ruling, Trump has again announced hiking these tariffs to 15 per cent. This levy, if notified, will be over and above the existing MFN or import duties in the US.For instance, if a product faces a 5 per cent MFN duty, an additional 15 per cent will be imposed, taking the effective duty to 20 per cent. Earlier, this was 5 plus 25 per cent. There is, however, no clarity about what the US tariff will be on countries such as India after the 150-day period.
To sign and implement the first phase of the bilateral trade agreement, the framework has to be converted into a legal document.To finalise the legal text for the first phase of the bilateral trade agreement, the Indian team is scheduled to meet its counterparts in Washington from February 23-26, 2026.
Commerce Minister Piyush Goyal had said the deal may be signed in March and implemented in April.During 2021-25, the US was India’s largest trading partner in goods. The US accounts for about 18 per cent of India’s total exports, 6.22 per cent of its imports, and 10.73 per cent of its bilateral trade.
In 2024-25, bilateral trade totalled USD 186 billion (USD 86.5 billion in exports and USD 45.3 billion in imports).
Also Read: ET Explainer: What will US tariff be now?
For India, this marks the latest shift in a tariff cycle that began in early 2025 and saw US duties rise to as high as 50% before being partially rolled back under an interim trade arrangement.
Ultimately, the Supreme Court’s ruling blocks Trump from using emergency powers under IEEPA to impose sweeping tariffs, invalidating a key legal pillar of his tariff strategy. However, sector-specific tariffs and other trade measures remain in force.
Trump said the India-US trade deal remains unchanged and confirmed that Indian exports will continue to face tariffs under the revised framework.
The administration has indicated it will use alternative legal provisions to sustain tariffs.
With inputs from PTI