New Delhi (IANS): India and the United States have officially rescheduled their high-level meeting on an interim bilateral trade agreement. Both nations now seek to evaluate the legal and economic fallout after the US Supreme Court struck down the Trump administration’s recent tariff hikes.
Sudden Legal Shift Triggers Delay
Originally, chief trade negotiators from both countries planned a three-day summit in Washington starting February 23. However, a senior official confirmed that the Indian team’s visit is now on hold. Both sides need time to study the “latest developments” stemming from the judicial setback before finalizing the trade deal.
The Supreme Court Verdict
On Friday, the US Supreme Court delivered a major blow to President Donald Trump’s trade policy. In a 6-3 verdict, the judges ruled that the executive branch exceeded its constitutional authority. The court held that the International Emergency Economic Powers Act (IEEPA) of 1977 does not grant the President the power to levy broad, aggressive import duties using emergency powers.
While the ruling does not invalidate every tariff, it successfully strikes down several of the administration’s sweeping reciprocal measures.
Trump Responds with 15% Tariff Hike
President Trump reacted sharply to the judicial decision, labeling it a “disgrace.” Despite the court’s intervention, the President moved quickly to implement a “backup plan.” On Saturday, he announced via Truth Social that he would immediately raise worldwide tariffs from 10% to 15%.
“Based on a thorough review of the ridiculous, poorly written, and extraordinarily anti-American decision… I will be raising the 10% Worldwide Tariff… to the fully allowed, and legally tested, 15% level,” Trump posted.
Impact on the Bilateral Deal
The rescheduling ensures that negotiators can “factor in” these fluctuating tariff rates and the legality of the new 15% level. Officials from both New Delhi and Washington will soon coordinate a new date that accommodates the shifting American trade landscape.
