The trade agreement between India and the US will be finalized once America resets its global tariff rates, stated Commerce Secretary Rajesh Agrawal on Monday, noting that President Donald Trump is focusing on rebuilding the global tariff framework.

On February 13, 2025, India initiated talks for a bilateral trade agreement (BTA) with the United States of America (USA) during the administrations of President Donald Trump and Prime Minister Narendra Modi.

Earlier in February this year, the two leaders reached an interim trade agreement, after which they issued a joint statement outlining the details of the deal. Under the trade deal, Trump lowered trade tariffs on India from 25percent to 18percent, also eliminating the extra 25percent tariff that was imposed due to New Delhi's acquisition of Russian oil.

The US Supreme Court dismissed Trump's tariff policy based on the 1977 International Emergency Economic Powers Act, or IEEPA law, to support new taxes on products from almost every nation globally.

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Regardless of the court ruling, numerous nations continue to encounter high tariffs from the US on certain sectors. Trump has invoked another statute—Section 232 of the 1962 Trade Expansion Act—to impose tariffs on steel, aluminum, automobiles, copper, and lumber globally, citing risks to national security.

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Shortly after the SC dismissed the tariff policy, Trump declared a new universal tariff of 10percent, undermining “reciprocity” under an alternative statutory authority. He also started inquiries that could result in tariffs for each country.

Almost a month following the Supreme Court's decision, Trump stated he would proceed with implementing tariffs “in a different manner.”

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"The decision that mattered most to me was TARIFFS! The Court knew where I stood, how badly I wanted this Victory for our Country, and instead decided to, potentially, give away Trillions of Dollars to Countries and Companies who have been taking advantage of the United States for decades. Our Supreme Court has made these Countries very happy but, as the Court pointed out, I have the absolute right to charge TARIFFS in another form, and have already started to do so," Trump says.