Whereas exporters say that they’ll take in the 15 per cent world tariffs imposed by US President Donald Trump so long as no new tariffs are added, consultants counsel India ought to now pause negotiations or fastidiously recalibrate its place in gentle of the ruling.
“The 2 sides are of the view that the proposed go to of Indian chief negotiator and the workforce be scheduled after either side has had the time to guage the newest developments and its implications. The assembly shall be rescheduled at a mutually handy date,” sources within the Commerce Division mentioned.
The Indian workforce was scheduled to go to Washington on February 23-25 to finalise the authorized textual content for the interim commerce pact the framework for which was agreed to by Trump and Prime Minister Narendra Modi on February 2.
Video Credit score: Businessline
Consultants say that India should not settle for the deal, within the kind it was envisaged by Trump, because it locations robust circumstances on the nation and issues had modified on the tariff entrance. “In trade for an 18 per cent reciprocal tariff fee, India was anticipated to supply main concessions—reducing tariffs, aligning financial insurance policies with U.S. pursuits, easing laws affecting US items, and signalling giant purchases of American merchandise. Now, even and not using a commerce settlement, with out making any sacrifices, India, like different international locations, faces a 15 per cent tariff on most items, rendering the negotiated association burdensome and one sided,” identified Ajay Srivastava from commerce analysis physique GTRI.
The US Supreme Court docket ruling ought to immediate India to stroll out of the continuing commerce deal negotiations, he added.
India’s determination to not ship its negotiating workforce to the US straight away is a welcome determination and India ought to fastidiously re-calibrate its place, mentioned Abhijit Das, impartial commerce knowledgeable and former head of the Centre for WTO Research.
“It (the SC determination) eases the strain on us to supply concessions with a purpose to safe decrease tariffs as in comparison with our rivals. Whether or not our negotiators are capable of leverage this stays to be seen,” Das mentioned.,
Most Indian exporters of labour-intensive items are relieved by the reducing of extra duties however are involved about Trump’s warning on duties underneath different heads sooner or later.
“After the responsibility correction from 50 to 18 per cent/25 per cent the prospects for India have improved once more. Now with the 15 per cent world tariffs it’s on par with any nation. We simply need to we positive that India doesn’t get any additional tariffs underneath the 301 or 201 sections. The sooner closure of the bilateral commerce settlement will assist on this regards,” mentioned Israr Ahmed, a Chennai-based exporter of leather-based items.
Clothes and textiles exporter Sanjay Jain identified that the 15 per cent tariffs on Indian exporters after the US Supreme Court docket judgement are nearly on the ranges agreed within the commerce deal (of 18 per cent), so not an excessive amount of had modified on the tariff entrance. With issues altering so quickly, Jain mentioned that there was no use over-assessing the scenario. “We should now simply concentrate on enterprise and let the sport proceed,” he mentioned.
There may be additionally hope of some refunds of the “unlawful” tariffs paid since 2025. “Some exporters and their consumers had been sharing the burden of the reciprocal tariffs (since August-September 2025). Now if there are discounts, these exporters could also be getting again their share,” mentioned Ajay Sahai from FIEO.
Final week, the US Supreme Court docket dominated 6-3 that the Worldwide Emergency Financial Powers Act (IEEPA) utilized by Trump to impose “reciprocal” tariffs, doesn’t truly give the President the ability to levy taxes or duties.
Trump instantly switched to Part 122 of the Commerce Act of 1974 that permits the President to bypass Congress and impose a short lived import surcharge of as much as 15 per cent for a most of 150 days to handle “giant and severe” balance-of-payments deficits.
Revealed on February 22, 2026
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