The trade deal between India and the US is now on hold. On February 23, 2026, both countries decided to stop a major meeting in Washington. A team led by Indian negotiator Darpan Jain was ready to fly to the US this week. They wanted to finish the legal text for an interim trade pact. But a big ruling from the US Supreme Court has changed the situation. The court said President Trump’s old tariffs were not legal. This has created a lot of confusion for trade experts on both sides.
The problem is about how the US charges taxes on foreign goods. The Supreme Court ruled 6-3 that the President cannot use emergency powers to set broad tariffs. This decision hit the “reciprocal” tariffs that Trump used against India. Before this, Indian goods like steel and textiles faced a 25 percent tax. Both nations had agreed to lower this to 18 percent in a new deal. But since the court struck down the old rules, the US needs time to find a new legal way to tax goods.
President Trump responded quickly to the court’s move. He announced a new global tariff of 15 percent using different trade laws. This has made the negotiations very messy. India now wants to see if they can get a better deal because of this legal chaos. Some experts say India might not have to give as much market access to US farmers now. Both sides said they will reschedule the meeting once they understand the new laws. For now, the goal of signing the deal in March 2026 looks very difficult.
Business leaders are worried about this new delay. They were hoping for lower taxes to start shipping more products. But the “napkin deal” between Trump and PM Modi is facing a big test. The Indian commerce ministry is now seeking legal advice on what to do next. Everyone is waiting for a new date for the talks. The trade relationship is still strong, but the rules are changing fast.
