New Delhi has officially suspended the dispatch of its trade delegation to Washington, which was supposed to finalize a key economic agreement between the countries. The decision to postpone the visit was made after the US Supreme Court overturned Trump's previous tariffs, forcing the American president to urgently introduce a new temporary rate of 15%. This was reported by Reuters, writes UNN.
Details
The planned agreement envisioned a reduction in American punitive tariffs on Indian goods from 25% to 18% in exchange for India's commitment to purchase US products worth $500 billion over the next five years. However, after Friday's court decision and Trump's Saturday announcement of a 15% tariff on all global imports, the previous architecture of the agreements became irrelevant.
Trump Imposes Global 10% Tariffs in Response to Supreme Court Decision21.02.26, 02:13
The decision to postpone the visit was made after discussions between officials of the two countries. A new date for the visit has not yet been set
India's Ministry of Commerce is currently conducting a detailed analysis of the legal implications of these changes, as the new conditions may render previously agreed benefits meaningless or technically impossible to implement.
Political pressure on the Modi government and the energy issue
The situation is complicated by internal political pressure in India, where the opposition Congress party has called for an immediate suspension of the agreement and a review of its terms. The opposition questions the appropriateness of Prime Minister Narendra Modi's hasty joint statements before the final decision of the American court, especially regarding the purchase of Russian oil and subsequent sanction risks.
Despite previous statements by Commerce Minister Piyush Goyal about the possible entry into force of the agreement in April, the current pause in negotiations jeopardizes the supply of American energy, aircraft, and technological products, which were to form the basis of a large-scale trade exchange.
Trump raised US tariffs to 15% for all countries21.02.26, 18:35