India trade minister on US tariffs: We will wait and watch and ensure India's best interests are protected.

India trade minister on US tariffs: We will wait and watch and ensure India's best interests are protected.

India Trade Minister Adopts Cautious Stance on U.S. Tariffs Amid Legal Uncertainty

India's Commerce and Industry Minister Piyush Goyal has emphasized a "wait and watch" approach to U.S. trade policy following the Supreme Court's invalidation of President Donald Trump's emergency tariffs, which had imposed 50% duties on Indian exports. Goyal confirmed during a meeting with U.S. Commerce Secretary Howard Lutnick and U.S. Ambassador Sergio Gor that India will prioritize safeguarding its commercial interests while maintaining open dialogue with Washington according to reports.

The two nations had earlier announced an interim trade framework in early February, reducing U.S. tariffs on Indian goods from 50% to 18% in exchange for India's commitment to purchase $500 billion in American goods over five years as reported. However, the Supreme Court's ruling on February 20, which deemed Trump's use of emergency powers to impose tariffs unconstitutional, has created legal and economic uncertainty. Trump has since announced new 10% global tariffs, further complicating negotiations according to BBC.

Goyal reiterated that India remains committed to expanding bilateral trade but will not finalize agreements until the U.S. clarifies its tariff policies. "We need to study the implications of recent developments," he stated, echoing comments from Indian officials who described the situation as "fluid" as noted. The Indian delegation's planned trip to Washington to finalize the interim deal has been postponed, though officials have not ruled out the agreement's eventual implementation according to reports.

Agricultural and energy sectors remain contentious. While the U.S. has pushed for India to eliminate non-tariff barriers in agriculture, Goyal clarified that India will protect sensitive sectors like dairy and poultry according to CNBC. Additionally, India has not committed to ceasing Russian oil imports—a key U.S. demand—as it prioritizes energy security amid volatile global markets as reported.

Analysts note that India's cautious stance reflects broader concerns about unilateral U.S. trade actions and their impact on developing economies. With no immediate resolution in sight, both nations are likely to adopt a phased approach, balancing economic cooperation with strategic safeguards according to analysis.