The trade negotiations between India and the United States which were set to start Monday in Washington DC to conclusively work out the legal framework of their agreement announced a few days earlier, has been postponed after a historic decision made by the US Supreme Court.

The court determined that President Donald Trump had gone beyond his powers by using sweeping tariffs under the International Emergency Economic Powers Act (IEEPA) and that he had cast doubt on various trade deals forged by his administration.

Key Highlights

• India-US trade talks rescheduled after US Supreme Court ruling on Trump-era tariffs.
• Legal finalisation of the bilateral framework agreement temporarily put on hold.
• US administration shifts to alternative tariff powers, signals fresh sectoral probes.

India and the US had previously settled on a larger outline and talks this week were to convert the understanding into a written document that could be enforced into law.

Authorities added that the promise by India to open the Indian market to American products would only become effective when the agreement was formally signed. The delay might thus realign the timeline of the immediate implementation, although President Trump asserted that the content of the India-US agreement is the same.

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The case has also elicited broader controversy on the legal sustainability of such similar structures of agreement with close to 20 trade partners in the US.

The administration has since used Section 122 of the 1974 Trade Act to retain temporary tariff authority as it indicates further inquiry in the areas such as semiconductors, electronics, critical minerals and pharmaceuticals potentially redefining the world trade environment.