India denies hold-off in trade talks with US, reiterates ongoing engagement
The Ministry of Commerce and Industry has denied reports of a pause in trade talks with the United States, emphasising that both parties continue to work towards a mutually beneficial agreement.
The Ministry of Commerce and Industry has denounced media claims suggesting a hold-off in bilateral trade talks between India and the United States, reiterating that the two sides remain engaged in pursuing a “mutually beneficial” trade agreement.
"We have noted a media report regarding ongoing trade talks with the US. It is denied that there is any hold off in bilateral engagement. It is reiterated that the two sides remain engaged for a mutually beneficial trade agreement," the ministry was quoted as saying by ANI.
The clarification comes after Reuters published a report suggesting that India will delay the signing of a trade deal with Washington for several months, citing four Indian sources aware of the development.
When is the interim deal expected to be signed?
According to the Reuters report, India had initially expected to sign an interim deal in March, followed by a full deal later in the year. Unnamed sources reportedly told Reuters that the deal timeline could now slip by several months, although US officials say they expect India to honour its commitments.
Trump announced in February that he and Modi “have agreed to a Trade Deal” between the United States and India, under which Washington will apply a reduced reciprocal tariff of 18%, down from 25%. The US leader also signed an executive order in the same month, eliminating the 25% tariff penalty imposed on India in August for purchasing Russian energy.
In return, he asked New Delhi for certain commitments, including halting Russian oil imports, lowering duties on American goods, and pledging to buy $500 billion worth of US products.
US launches probe into countries, including India
Shortly after the proposed trade deal between New Delhi and Washington was announced, the US Supreme Court struck down sweeping tariffs imposed by Trump, effectively declaring the previous levies illegal.
In an attempt to reinstate tariff pressure following the apex court's ruling, the US government on Thursday launched fresh investigations into alleged “unfair trade practices” by 16 major trading partners, including India, China, and Bangladesh, ANI reported.
These inquiries will be carried out under “Section 301” of the Trade Act of 1974. This legislation grants the US Trade Representative the authority to enforce tariffs or other punitive actions against countries who found to be using unfair trade practices.
US Trade Representative Jamieson Greer indicated that the probe could result in new tariffs being imposed on China, the European Union, India, Japan, South Korea, and Mexico by the coming summer, the agency reported.