The three-day meeting to be held on the interim trade agreement between India and America has been postponed. The purpose of this week’s discussion was to finalize the legal documents between the two countries, but this decision was taken due to the recent decision of the US Supreme Court and changes in the tariff policy of the Trump administration. According to sources, this postponement may affect the proposed agreement in the month of March, which was the deadline set by the leaders of both the countries.
Trump’s new plan for tariffs
Last Friday, i.e. on February 20, 2026, the US Supreme Court canceled President Donald Trump’s decision to impose tariffs using emergency powers. The court said that major decisions like tariff policy fall under the purview of Congress, not the President.
After this decision, the Trump administration took recourse to Section 122 of the Trade Act 1974, under which tariff rates are limited to 15% and can be implemented only for 150 days. But now Section 338 is also being considered, which allows imposition of tariff up to 50% under the Tariff Act of 1930.
India and America will meet on a new date
An official said on the condition of anonymity, ‘The situation in America is still uncertain. Earlier they were talking about sections 232, 301 and 122, now there is discussion on 338. In such a situation, it becomes difficult to make any permanent agreement.
Due to this uncertainty, the visit of India’s Chief Negotiator Darpan Jain to America has also been postponed. Both sides agreed that the new date would be decided only after assessing the recent developments.
First step towards a bigger trade agreement
This interim agreement was the first step towards a larger trade agreement between India and America. After the meeting between Prime Minister Narendra Modi and Trump last year, both the countries had set a target of signing the interim deal by March 2026. In a joint statement issued on February 6, both sides had agreed on the framework, which also included a provision for adjustment in case of change in tariffs.
But the Supreme Court’s decision changed everything. The Indian Commerce Ministry issued a statement on 21 February 2026 saying, ‘We are studying the decision of the US Supreme Court and Trump’s press conference. We are trying to understand the impact of these changes.
US Treasury Secretary Scott Besant posted on
India has a chance to agree to the conditions
The postponement is also raising questions over US Trade Representative Jameson Greer’s proposed visit to India in March, where the agreement was to be signed. Neel Katyal, a lawyer who challenged the tariff in the US Supreme Court, said that if Trump is so confident in his policy, then he should seek approval from Congress. This is an opportunity for India to negotiate on its own terms, but uncertainty is affecting both sides.
