India’s blunt answer to Trump: ‘Trade deal will not be done on old terms’, India-US agreement postponed amid tariff dispute!

New Delhi/Washington: The much-awaited Interim Trade Agreement between India and America has currently been put on hold. The Indian government has made it clear that this agreement will not be signed until America clears the picture of its new global tariff regime. This tough stance of India has come amidst the threats of Donald Trump, in which he has talked about imposing heavy tariffs on countries around the world again.

Game changed after Supreme Court’s decision, March deadline ends

This trade agreement was earlier expected to be signed in March 2026. However, a recent decision of the US Supreme Court turned the entire situation upside down. Due to the court decision, many tariffs previously imposed by the US have become ineffective and currently the US is charging 15% tariff. India argues that until the new tariff structure is fully prepared, sealing any deal would compromise the interests of Indian exporters.

What was the initial deal and why did it get stuck?

An initial agreement was reached between the two countries in February. Under this, America had agreed to remove the 25% additional tariff imposed on India for buying Russian oil. Additionally, there was a plan to reduce the ‘reciprocal tariff’ from 25% to 18%. But now the Trump administration is trying to find a solution to the Supreme Court’s decision. Trump clearly said on Monday that he has full authority to impose tariffs under other legal provisions and he is looking for new ways to compensate for the revenue loss of $ 1.6 trillion.

The stir increased due to Malaysia’s withdrawal

The impact of America’s uncertain tariff policies is beginning to be seen globally. Malaysia has recently announced its exit from its trade deal with America. Malaysia says that the old agreement is no longer ‘valid’ after the Supreme Court’s decision on the policies of the Trump administration. Experts believe that after this step of Malaysia, India has also adopted the policy of ‘wait and watch’ out of caution.

Technical talks continue, but India insists on ‘new conditions’

Even though teams from both the countries are working on technical aspects and non-tariff barriers, India has sent a message to the Trump administration that it will not succumb to any pressure and settle on outdated or unclear terms. India wants a permanent solution to tariffs and other trade barriers imposed on specific sectors. Now everyone’s eyes are on what new provisions the Trump administration brings under Section 122 and Section 301 of the Trade Act.