U.S. Tariff Policy Shift, India Postpones Trade Visit to Washington

Hello everyone, please pay attention to the news about tariffs.

On February 22, it was reported that after the U.S. Supreme Court ruled to overturn several of Trump’s tariff measures, Indian trade officials will postpone their planned visit to the U.S. aimed at finalizing a temporary trade agreement.

Prior to this, the U.S. Supreme Court ruled on Friday that Trump’s tariff policies were illegal. Within a few hours, Trump invoked Section 122 of the Trade Act of 1974, initially imposing a 10% global import tariff, which was later increased to 15%.

Sources said that “the meeting will be rescheduled at a mutually convenient date.” India and the U.S. agree that the visit should take place “after both sides have had time to assess the latest developments and their impacts.”

India’s chief negotiator, Dapan Jain, and his team were scheduled to begin a three-day meeting in the U.S. later this week.

India currently faces a 25% “reciprocal tariff.” After reaching a temporary agreement earlier this month that allows for adjustments, this rate was originally set to be reduced to 18%.

In a joint statement released on February 6, the U.S. and India stated: “If either party agrees to changes in tariffs, both the U.S. and India agree that the other can modify its commitments.”

Ajay Srivastava, founder of the Global Trade Research Initiative and former Indian trade negotiator, said that at this stage, like other countries, India will face a 15% tariff in addition to the Most Favored Nation (MFN) rate, which is usually around 2-3%.

Srivastava stated, “The previous negotiations for an 18% tariff were based on certain interests, but those premises have now disappeared. Both sides must reassess their strategies, and the U.S. also has more urgent issues to address.”