India-US trade deal put on hold until new tariff structure is in place

March 16, 2026

New Delhi: The proposed trade agreement between India and the United States will be signed only after the new tariff structure is implemented. Rajesh Agrawal announced this during a trade data briefing on Monday.

He said the agreement will be finalized once the US restores global tariff rates. The previous US tariff system was struck down following a court decision.

According to the official, each country views a trade agreement as a package that takes into account the advantages it gains over competitors.

Negotiations postponed due to tariff dispute

Last month, India and the US announced the development of a framework for the first phase of a bilateral trade agreement. Under this proposed framework, the US agreed to reduce tariffs on Indian goods to 18 percent.

However, the tariff structure was later changed following a US Supreme Court ruling. Following the court’s decision, former President Donald Trump imposed a 10 percent tariff on all countries for 150 days, effective February 24th.

This has also led to the postponement of a meeting between chief negotiators from India and the US. Officials from both countries were scheduled to meet last month to finalize the legal documents for the agreement.

India in FTA talks with several countries

The government stated that New Delhi is currently discussing the details of a trade agreement with Washington.

India is also negotiating free trade agreements (FTAs) with six other countries and regional groups. These include Australia, Sri Lanka, Peru, Chile, the Eurasian Economic Union, and Israel.

These agreements aim to further strengthen India’s global trade partnership network.

US Launches ‘Unfair Trade’ Investigation

Meanwhile, the US administration has tried to reinvigorate tariff pressure. Recently, the Office of the United States Trade Representative announced the launch of investigations into alleged unfair manufacturing practices against 15 major economies, including India.

This investigation is being conducted under Section 301 of the Trade Act of 1974. If a country is found to have engaged in unfair trade practices, the US can impose new tariffs, ban imports, or suspend concessions provided under trade agreements.