On February 6, 2026, India and the United States issued a joint statement outlining a framework for an interim trade agreement. The two nations initially aimed to finalize this deal by March 2026; however, progress has been hindered by recent developments, including the US Supreme Court's ruling on February 20 that revoked President Donald Trump's authority to impose country-specific tariffs under the International Emergency Economic Powers Act (IEEPA). Following this ruling, the US imposed a blanket 10% surcharge on imports from all countries for 150 days. Consequently, India has opted to delay signing the interim agreement until the US establishes a new global tariff structure. The agreement aims to reduce tariffs, eliminate non-tariff barriers, and secure commitments to enhance long-term trade benefits. India's average applied tariff rate was 16.2% in 2024, down from 17% in 2023, with significantly higher rates on agricultural goods. The report from the US Trade Representative (USTR) highlighted India's high tariffs on various products, including 150% on alcoholic beverages and 100% on certain nuts. In its recent budget, India has taken steps to reduce tariffs on life-saving medicines and components for electric vehicle manufacturing, indicating a push to support local industries while navigating complex trade relations.