India–US Interim Trade Deal Put on Hold Until New US Tariff Framework

The signing of India's proposed interim trade deal with the US will only go ahead once Washington has settled on a new global tariff framework, Moneycontrol reported.

This follows a US Supreme Court ruling last month that stripped President Donald Trump of his executive authority to impose sweeping duties under the International Emergency Economic Powers Act (IEEPA).

the report said, citing a senior government official, that both parties are still working on the finer details of the deal and there is no stand-off.

The official was also keen to draw a distinction between India's position and that of Malaysia, which recently pulled out of its trade arrangement with the United States after the tariff regime underpinning the deal was struck down.

"As far as Malaysia is concerned, there are two types of countries, one set that has signed a legal agreement and another that has not," the official said. "Malaysia had signed a legal agreement, which is why it had to walk out because the tariffs under which they signed it no longer exist. India has not signed any legal agreement yet; it is only a framework deal."

On the ongoing Section 301 investigation by the US, the official said the government is examining its legal implications.

“We have just seen the notices and are examining their legal impact. These investigations take time, and my sense is whenever a deal is finalised and signed in the future, this will also be taken care of,” the source added.

Trump has reduced "reciprocal tariffs" on Indian goods to 18% from earlier 50%. India and the US was supposed to sign the interim deal by mid-March after US President Donald Trump announced the conclusion of discussions between both nations. Currently, a 10% tariff under Section 122 of the Trade Act of 1974 is in place which will remain for next 150 days since it came into effect.