India is waiting for clarity on the new tariff structure from the United States before signing the trade agreement already negotiated between the two countries. This information comes from government sources.

Earlier, the deal was expected to be signed in March. However, the situation changed after the Supreme Court of the United States ruled on tariffs imposed under the International Emergency Economic Powers Act. This ruling had not been delivered when the agreement was finalised.

Sources said the earlier tariffs are no longer in place. Currently, the US has imposed a temporary 10% tariff under Section 122 of the Trade Act of 1974 for five months. This is under the Balance of Payments provision.

Rajesh Agrawal, Commerce Secretary of India, had earlier said both countries announced the trade deal on 2nd February, 2026. This was followed by a joint statement on 7th February, 2026. On the same day, the US also removed the additional 25% tariffs on some Indian exports that had been imposed due to India’s imports of Russian oil.

After the court ruling on 20th February, 2026, the reciprocal tariffs were invalidated. The US later issued executive orders imposing a 10% tariff on certain imports from all countries. Meanwhile, the US is working on a new global tariff structure.

Government sources said the trade deal will be signed once the US finalises this broader tariff framework. They emphasised that there is no standoff between the two countries and discussions are continuing.

According to officials, countries are negotiating trade deals based on comparative advantages. India is also assessing how tariff changes could affect its competitiveness against other exporters in the US market.

Sources added that the earlier version of the agreement was based on tariffs that no longer exist, so it will need to be recalibrated. The final tariffs on India could also change as the new global tariff architecture evolves.

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