India delays US trade talks after Supreme Court rejects Trump tariffs, source says

An attendee holds US and India's flags as they gather on the South Lawn of the White House in Washington, on 22 June 2023. Photo: Kevin Lamarque/Reuters

India has delayed plans to send a trade delegation to Washington this week, chiefly because of uncertainty after the US Supreme Court struck down tariffs imposed by President Donald Trump, a source in its trade ministry said on Sunday (22 February).

One of the first concrete reactions among Asian nations to the decision, it follows Trump's move on Saturday to levy a temporary tariff of 15%, the maximum allowed by law, on US imports from all countries, following the court's rejection.

"The decision to defer the visit was taken after discussions between officials of the two countries," said the source, who sought anonymity as the matter is a sensitive one. "No new date for the visit has been decided."

The delay came mainly from the uncertainty over tariffs following Friday's judgment, the source added.

The delegation had been set to leave on Sunday for talks to finalise an interim trade deal, after both countries agreed on a framework for Washington to cut punitive tariffs of 25% on some Indian exports linked to New Delhi's Russian oil purchases.

US tariffs on Indian goods were set to be cut to 18%, while India agreed to buy US items worth $500 billion over five years, ranging from energy supplies to aircraft and parts, precious metals and technology products.

India's opposition Congress party had called for the interim pact to be put on hold, urging a renegotiation and questioning Prime Minister Narendra Modi's decision to issue a joint statement before the court's ruling.

On Saturday, the Indian trade ministry said it was studying the implications of the judgment and later US announcements.

Last week, Trade Minister Piyush Goyal said the interim pact could take effect in April, after outstanding issues were resolved during the delegation's visit to Washington.