Nirmala Sitharaman: US Tariffs ‘Weaponised’, Stalling India-US Trade Deal Progress

India’s efforts to finalize a trade agreement with the United States appear to have hit a significant roadblock, with Finance Minister Nirmala Sitharaman indicating that the negotiations have reached a “plateau.” Speaking at an event in New Delhi, she attributed the stagnation to the increasing use of tariffs by the US, describing them as “weaponised” and complicating further discussions.

The backdrop to these negotiations is a tentative interim trade deal established on February 2, which aimed to reduce US tariffs on Indian exports from a punitive 50% to a more manageable 18%. This initial high rate included a 25% tariff that was enforced in August 2025 as a penalty for India’s oil imports from Russia. However, the path towards a final agreement has been further complicated by recent judicial decisions in the US.

On February 20, the US Supreme Court invalidated tariffs that had been imposed during Donald Trump’s presidency, asserting that the former president had overstepped his authority. In response, Trump reinstated a temporary 10% tariff on imports, citing the provisions of the 1974 Trade Act. This unexpected move has cast uncertainty over the future of trade agreements with various countries, including India.

During her remarks, Sitharaman emphasized the challenges that lie ahead, stating that reaching any additional concessions would be “very, very difficult” for both India and the US. She characterized the discussions as intense and vigorously negotiated, highlighting the complexities involved in reconciling the interests of both nations. Despite the current stalemate, Sitharaman reassured that talks would continue, reflecting her commitment to advancing India’s trade objectives.

The implications of these stalled negotiations are significant for both economies. As India seeks to bolster its international trade relationships, particularly with a key partner like the US, the ongoing tariff disputes could hinder potential growth opportunities and economic collaborations. Both sides will need to navigate this challenging landscape carefully to restore momentum in their bilateral trade relationship.

Source: scroll.in