New Delhi has seen a sudden shift in its trade diplomacy with the United States. What was set to be a crucial three-day meeting between top negotiators from both nations has been rescheduled. Reliable sources confirm the delay stems directly from the fallout of a landmark US Supreme Court ruling and President Donald Trump’s subsequent tariff escalation.
The planned discussions, originally slated for February 23 in Washington, aimed to finalize an interim bilateral trade agreement. However, both sides agreed to hit pause amid the turbulent economic signals from America. The Supreme Court on Friday struck down Trump’s sweeping tariff measures, deeming them an unconstitutional overreach of executive power. In a 6-3 decision, the justices ruled that the 1977 International Emergency Economic Powers Act (IEEPA) did not authorize such aggressive global import duties.
Trump wasted no time retaliating. On Saturday, via Truth Social, he announced an increase in global tariffs from 10% to 15%, framing it as a necessary response to decades of unfair trade practices against the US. ‘Countries have been ripping us off for decades without retaliation—until I came along,’ he declared, vowing to implement the hike immediately.
Indian officials, speaking on condition of anonymity, emphasized the need to study these developments closely before proceeding. ‘The Indian team’s proposed visit to Washington will now happen later,’ a senior trade official stated. Both nations will first analyze the court’s implications and the new tariff reality. A mutually convenient new date for the talks will be set soon.
This postponement underscores the fragility of global trade negotiations in an era of judicial interventions and bold presidential actions. As India and the US navigate these waters, stakeholders watch closely for signs of progress or further delays. The interim deal, once seen as a quick win, now hangs in the balance amid heightened uncertainties.