The US-India trade pact demonstrates the nature of a temporary structure that requires constant reevaluation

MEVictim · 2026-02-22T04:02:57+00:00

The U.S.-India trade agreement, viewed as temporary and conditional, contrasts with formal regional agreements. It enables Indian exporters to benefit from reduced tariffs, yet maintains U.S. oversight to swiftly reinstate higher tariffs if necessary.

MEVictim

2026-02-22 04:02:57

Abstract generation in progress

According to analytical assessments presented on February 9, the trade agreement between the US and India does not function as a traditional parity treaty between two leading economies but rather as an emergency support tool. The distinctive feature of this trade agreement lies precisely in its temporary nature—it is not a long-term partnership but a conditional relief that can be reviewed at any moment. This assessment contrasts with full formal pacts signed by India’s regional neighbors.

Regional Agreement Comparison: Why India Has a Different Status

While Thailand, Malaysia, Indonesia, and Vietnam have established their trade relations with the US through formal multi-year agreements, the text of India’s pact, which the Indian public was able to review on Saturday, clearly demonstrates its temporary nature. This difference in approach indicates India’s special status in American trade strategy and suggests different logic and conditions for interaction.

Relief Mechanism: From Punitive Tariffs to Conditional Reduction

Indian exporters benefit from recalculated customs duties. The previously imposed 50% tariff, introduced in August, has been halved—a measure perceived by many as a weak consolation. However, these reliefs should not be viewed as forgiveness of trade disagreements. Rather, they represent a conditional shift of sanctions into a state of uncertainty. The initial 50% penalty was motivated by accusations related to indirect financing of Putin’s military operation in Ukraine through the purchase of Russian oil. The remaining 25% duty remains a leverage point and can be used under certain circumstances.

Presidential Oversight Mechanism: A Tool for Permanent Control

Through a new presidential order, US Commander-in-Chief Donald Trump established a specialized committee headed by Secretary of Commerce Howard Lutnick. The function of this body is to monitor trade flows to identify any direct or indirect channels of Russian oil imports into the Indian market. Based on the committee’s assessment, the United States has the authority to immediately restore the 25% duty without prior notice or negotiation. Thus, the temporary structure of the trade pact is supported by a permanent oversight mechanism that grants the US administration absolute flexibility to revise the terms of the agreement.

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