Indian Finance Minister Nirmala Sitharaman has declared it premature to assess the potential economic repercussions of recent tariff modifications announced by US President Donald Trump. The cautious statement came alongside the postponement of bilateral trade negotiations originally scheduled for Monday between the two nations.
Minister Sitharaman emphasized that India’s Commerce Ministry is currently conducting a comprehensive review of the evolving trade situation before determining the timeline for further diplomatic engagement. “On trade, particularly, aside from the Indian economy in general, the Commerce Ministry is reviewing the situation. The delegation will have to take a call on when they are going to go for further negotiations,” Sitharaman stated during her media briefing.
The trade discussions delay follows two significant developments: a recent US Supreme Court ruling on presidential tariff authority and subsequent policy announcements from the Trump administration. These developments have created uncertainty around previously established trade terms, including a recent agreement that had reduced US tariffs on Indian goods from 50% to 18%.
India’s Commerce Ministry has acknowledged these developments formally, noting: “We have noted the US Supreme Court judgement on tariffs. President Trump has also addressed a press conference in that regard. Some steps have been announced by the US Administration. We are studying all these developments for their implications.”
The latest US policy shifts include the imposition of a 10% tariff on Indian imports initially, subsequently increased to 15%, with these measures scheduled to remain in effect for 150 days. This represents a reversal from the tariff reduction achieved earlier this month, which itself had moderated the aggressive 50% tariffs imposed in August last year—measures originally implemented as penalties for India’s purchase of Russian oil.
Despite these bilateral challenges, Minister Sitharaman highlighted India’s continued progress in expanding its global trade network, having recently finalized agreements with the UAE, Qatar, Oman, the European Union, the United Kingdom, Australia and New Zealand. “Our attempt to have a trade agreement will go on with countries,” she affirmed, reinforcing India’s commitment to global market engagement.
President Trump has meanwhile asserted that the fundamental trade understanding between the United States and India remains unchanged despite these tariff adjustments and legal developments.