Business

India and the United States have postponed their trade discussions that were scheduled for this week. This delay comes as both countries "study the implications" of the US Supreme Court's decision to overturn the global tariffs set by former President Donald Trump's administration, according to an official from India’s commerce ministry speaking to the BBC. An Indian team was supposed to travel to Washington this week to finalize an interim trade agreement announced earlier this month. This deal aimed to lower US tariffs on Indian products from 50% to 18%, although some details are still unclear. The Supreme Court's decision has created new uncertainties, as Trump indicated he would apply a 15% global tariff on all goods entering the US. It remains uncertain how this ruling and the new tariffs will affect current trade agreements between the US and other nations. This situation follows a tumultuous period for Indian exporters, who have been dealing with the 50% tariffs imposed by Trump that took effect on August 27. These tariffs included penalties for purchasing Russian oil, which Trump had frequently criticized. On February 2, Trump announced that the two countries had reached an interim trade agreement following a call with Prime Minister Narendra Modi, which eased concerns in Indian markets. According to this agreement, India would lower its standard tariffs on all US industrial goods and several food and agricultural items, while the US would reduce reciprocal tariffs affecting around 55% of Indian exports, cutting them from 50% to 18%. However, this announcement raised some unresolved questions, such as whether India was conceding more than it was gaining, if Delhi agreed to stop buying Russian oil, and whether India could realistically purchase $500 billion worth of US goods over the next five years.