India-US trade deal to be signed when Trump re-establishes tariff rates, Trade Secy says

India-US trade deal will be signed when America re-establishes global tariff rates, Commerce Secretary Rajesh Agrawal said on Monday, adding that President Donald Trump is working on recreating global tariff architecture.

India launched negotiations for a bilateral trade agreement (BTA) with the United States of America (USA) on February 13, 2025, under President Donald Trump and Prime Minister Narendra Modi.

Also read: Trump vows to bring back tariffs ‘in another form’ after Supreme Court blow


The two leaders agreed to an interim trade agreement earlier in February this year, following which, they released a joint statement revealing the terms of the pact. Under the trade agreement, Trump reduced trade tariffs on India from 25% to 18%, also waiving off the additional 25% tariff imposed because of New Delhi's purchase of Russian oil.

The US Supreme Court ruled down Trump's tariff policy under the 1977 International Emergency Economic Powers Act, or IEEPA law, to justify new taxes on goods from nearly every country in the world.

"US deal was to be signed in March. IEEPA (International Emergency Economic Powers Act) tariffs don't exist per se due to US Supreme Court rulings now. Under Article 122, tariffs of 10% exist globally now," Agrawal said.

"Any deal that India signs will be signed against a tariff structure. The US is trying to recreate a tariff architecture globally. Once US creates that, it will be better to sign then. Actual signing will be done when new architecture of tariffs globally is done by US," he added.

Despite the court ruling, most countries still face steep tariffs from the US on specific sectors. Trump has used another law - Section 232 of the 1962 Trade Expansion Act - to slap levies on steel, aluminum, cars, copper, and lumber worldwide, citing national security threats.

Soon after the SC ruled out the tariff policy, Trump announced a new universal tariff of 10% so much for “reciprocity” under a different statutory authority. He also launched investigations that might lead to country-by-country tariffs.

Nearly a month after Supreme Court's ruling, Trump said he would move forward with imposing tariffs “in another form."

"The decision that mattered most to me was TARIFFS! The Court knew where I stood, how badly I wanted this Victory for our Country, and instead decided to, potentially, give away Trillions of Dollars to Countries and Companies who have been taking advantage of the United States for decades. Our Supreme Court has made these Countries very happy but, as the Court pointed out, I have the absolute right to charge TARIFFS in another form, and have already started to do so," Trump said in post on Truth Social.

Trump's unfair trade probe

India is examining the legal impact ‌of the ⁠US’ fresh investigations into excess industrial capacity among trading ⁠partners, Trade Secretary ‌Agrawal said.

Amid the ongoing geopolitical uncertainties due to the Middle East conflict, the office of the US Trade Representative launched an 'unfair trade practices' investigation into what it described as excessive industrial capacity among 16 economies, including India, China, the European Union, Japan, South Korea and Mexico.

The fresh probe, targeting major trading partners like India and China, could lead to new tariffs as early as this summer.

US-Israel war on Iran hits India's trade

On trade disruptions due to US-Israel vs Iran war, the commerce secretary said that India is facing certain logistical challenges and exports will also suffer.

"Air cargo is also facing certain challenges because of some disruptions in flights. It will have some impact. Imports from India will also suffer because they are also dependent on India for multiple categories," he said.

The government is considering measures to support exports to the Middle East as it aims to announce more measures this week to support exporters.

Amid the escalating conflict in the Middle East region, Agarwal said that exports to West Asia have been impacted. He further added that March is likely to be challenging in terms of trade.