Rajesh Agrawal said on Monday that India will sign its proposed trade agreement with the United States only after Washington completes its new tariff framework.

Agrawal spoke during a trade data briefing. He said officials from both countries are still working on the details of the deal. “We are talking right now on details with the US,” he said. He added that the agreement will be signed once the new tariff system is finalised.

US Tariff Changes Delay Deal

India and the US had planned to sign an interim trade pact in March. The two sides had already finalised the framework for the first phase last month.

However, the timeline changed after major shifts in US trade policy. Earlier, sweeping tariffs introduced by Donald Trump on several countries, including India, were struck down by the Supreme Court of the United States. The ruling removed the earlier tariff system.

After the decision, the US government introduced a temporary tariff of about 10 percent on imports from all countries. Officials imposed these duties under Article 122 of the US Constitution. They said the move addressed balance-of-payments concerns. The temporary tariffs will remain in place for about five months.

India Seeks Advantage in US Market

The proposed agreement aims to give both countries better access to each other’s markets.

Under the first phase of the deal, tariffs on Indian goods entering the US market were expected to fall to about 18 percent. Earlier, these duties had reached nearly 50 percent.

Agrawal said India will sign the deal only after Washington restores a clear global tariff structure following the court ruling.

“Because at the end of it, each country is doing a deal as a part of a package where one is at comparative advantage… vis-à-vis competitors,” he said, according to Press Trust of India.

Negotiators Postpone Meeting

India and the United States had planned a meeting between their chief negotiators last month. They aimed to finalise the legal text of the agreement. Officials have now postponed the meeting because of the tariff changes. Agrawal said the original March deadline was set before the Supreme Court ruling.

“The deal was to be signed in March. When we said this, the Supreme Court judgment on IEEPA tariffs had not come. Now, with the judgment, those tariffs no longer exist,” he said.

“Currently, tariffs are being imposed under Article 122 related to balance-of-payments concerns, which will remain for five months at around 10 per cent. The deal we sign must reflect the tariff structure or comparative advantage that India receives in the US market.”

India Expands Global Trade Talks

India is also negotiating several other trade agreements. The government wants to expand global trade partnerships. Officials said India is currently negotiating six free trade agreements with different countries and regional groups. These include Australia, Sri Lanka, Peru, Chile, the Eurasian Economic Union, and Israel.

US Launches Probe Into Trade Practices

Meanwhile, the Trump administration has taken steps to increase trade pressure after the court ruling.

The Office of the United States Trade Representative has launched an investigation into alleged unfair manufacturing practices by India and 15 other major economies.

The investigation falls under Section 301 of the Trade Act of 1974. If the US finds unfair practices, it can impose new tariffs, restrict imports, or suspend trade concessions.