In trade deal with US, India needs to secure terms harder to reverse

In February 2025, the United States and India unveiled a framework for an interim trade deal. However, confusion has since become the most costly tariff in their relationship, as Washington's tariff enforcement is unpredictable. The US Supreme Court struck down Trump's reciprocal tariffs, rendering India's new rate uncertain. Despite negotiations ongoing for twenty months, the deal has stalled for the third time.

American negotiators called off a round in August, citing tariffs nearing 50 percent. In February, a planned Indian visit was postponed due to shifting legal ground. Now, the US Trade Representative states the deal is 90 percent "plus there," yet the US Trade Representative sees no imminent progress. India seeks a clear advantage and wants to secure terms harder to reverse, such as a ceiling on tariff increases, sector-specific exemptions, and prior notice and consultation for any new tariffs affecting India.