Days after the US Supreme Court struck down President Donald Trump’s reciprocal tariff, Commerce and Industry Minister Piyush Goyal held a meeting with US Secretary of Commerce Howard Lutnick and US Ambassador to India Sergio Gor and discussed ways to expand trade and economic partnership between the two countries. The meeting assumes significance as India and the US are in the process of finalising the legal text for the first phase of a proposed bilateral trade agreement.  

In a major setback to US President Donald Trump's pivotal economic agenda in his second term, the US Supreme Court ruled that the tariffs imposed by Trump on nations around the world were illegal and that the president had exceeded his authority when he imposed the sweeping levies by using the International Emergency Economic Powers Act (IEEPA) of 1977. Following the order, the US imposed 10 per cent tariffs on all countries for 150 days effective from February 24, 2026. Trump has announced to increase it to 15 per cent, but there is no official order on that yet.

The Indian and US teams were scheduled to meet this week in Washington to finalise the legal text for the pact, however, the meeting was postponed following the US Supreme Court order striking down President Donald Trump's sweeping tariffs. In August 2025, the US had imposed a 25 per cent reciprocal tariff on India. It later imposed another additional 25 per cent duty citing India's purchase of Russian crude oil, taking the total tariffs on India to 50 per cent. India and the US, earlier this month, agreed on a framework to finalise an interim trade deal, under which US will cut tariffs on Indian goods to 18 per cent from 50 per cent imposed earlier. To sign and implement the first phase of the bilateral trade agreement, the framework has to be converted into a legal document.