The Ministry of Commerce and Industry has condemned media claims suggesting a postponement of bilateral trade talks between India and the United States, reiterating that both sides remain engaged in pursuing a “win-win” trade deal.
“We have noted a media report regarding the ongoing trade talks with the US. It is denied that there has been any deferral of bilateral commitments. It is reiterated that both sides remain engaged in a mutually beneficial trade agreement,” the ministry said, according to ANI.
The clarification comes after Reuters published a report suggesting India would delay signing a trade deal with Washington by several months, citing four Indian sources with knowledge of the development.
When is the provisional agreement expected to be signed?
According to a Reuters report, India initially expected to sign an interim agreement in March, followed by a full agreement later in the year. Unnamed sources reportedly told Reuters that the deal’s timeline could now drop by several months, although US officials say they expect India to honor its commitments.
Trump announced in February that he and Modi had “agreed on a trade deal” between the United States and India that would see Washington apply a reduced reciprocal tariff of 18% from 25%. In the same month, the US leader also signed an executive order that removed a 25% tariff penalty imposed on India in August for buying Russian energy.
In return, he asked Delhi for certain commitments, including a freeze on Russian oil imports, a reduction in tariffs on American goods and a promise to buy $500 billion worth of American products.
The US launched a probe into countries including India
Shortly after the proposed trade deal between Delhi and Washington was announced, the US Supreme Court struck down the sweeping tariffs imposed by Trump, effectively declaring the previous charges illegal.
Seeking to renew the tariff pressure following the Supreme Court’s ruling, the US government on Thursday launched a fresh probe into alleged “unfair trade practices” by 16 major trading partners, including India, China and Bangladesh, ANI reported.
These investigations will be conducted under “Section 301” of the Trade Act of 1974. This legislation gives the US Trade Representative the authority to enforce tariffs or other punitive actions against countries found to be using unfair trade practices.
US Trade Representative Jamieson Greer said the investigation could lead to new tariffs on China, the European Union, India, Japan, South Korea and Mexico by the coming summer, the agency said.
