3 min readNew DelhiUpdated: Feb 23, 2026 08:37 AM IST
The three-day India-US trade talks, set to start Monday in Washington DC to finalise the legal text of the agreement struck earlier this month, have been rescheduled. This comes after the US Supreme Court ruled that President Donald Trump overstepped his powers by imposing sweeping tariffs under International Emergency Economic Powers Act (IEEPA), The Indian Express has learnt.
India and the US had agreed to a framework but were yet to officially sign the deal. Negotiators were expected to give legal shape to the agreement this week. The talks assumed significance as the agreement, like all Trump deals in this regard, was unconventional in nature and could fall out of the ambit of traditional World Trade Organisation (WTO) norms.
The delay in negotiations could mean that India may not have to immediately give market access to American products as agreed during negotiations. However, Trump on Friday said that nothing has changed in the India-US deal.
Government officials had said that market access from the Indian side would only be possible after the legal agreement is signed.
The US has signed framework agreements with nearly 20 trade partners. US Trade Representative Jamieson Greer had argued that all these 20-odd trade deals stand as negotiated but Singapore-based Heinrich Foundation said the legal authority for the White House to embark on these agreements, none of which have been approved by Congress, is unclear.
“The Court’s decision raises additional questions about the durability of these napkin deals, so called because of their flimsy quality. If foreign governments do not choose to reopen negotiations with the White House, it is likely that foreign firms will file new lawsuits against IEEPA-backed ‘reciprocal’ tariff rates imposed on their goods,” Deborah Elms, Head of Trade Policy, Hinrich Foundation said.
After the US Supreme Court order, the Trump administration switched to Section 122 of the country’s 1974 Trade Act that gives the President temporary powers to impose tariffs, which would take the overall rate to 15 per cent.
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Elms said the Trump administration could be planning other measures. The US has said it would start additional investigations to address “unfair trade practices” during the coming months. These are handled at the country level and can result in tariffs against all goods from targeted markets, Elms said.
The White House had already launched investigations into a wider range of additional sectors like semiconductors and electronics, drones, critical minerals, and pharmaceuticals. The Indian steel and aluminum industry had sought concessions under the US deals. Elms said it was “highly likely” that “these new sectors will receive higher tariffs soon”.
© The Indian Express Pvt Ltd
