India-US Trade Deal Signing Delayed as Markets Fall on Oil Shock
- 13th March 2026
- 07:00 PM
- 2 min read
Summary
India is set to delay signing the interim trade agreement with the United States by several months, according to four Indian government sources cited by Reuters, as fresh investigations by the Trump administration add new friction to negotiations.The US Trade Representative launched Section 301(b) probes on March 11, 2026, targeting structural excess capacity in manufacturing sectors across 16 countries, including India. USTR public comment dockets open March 17, with Section 301 Committee hearings set for May 5. New tariffs on India could follow after May. The move comes after the US Supreme Court struck down President Trump’s broader reciprocal tariffs under the International Emergency Economic Powers Act, forcing the administration to pursue more legally specific, sector-based investigations.
New Delhi had initially expected to sign an interim deal in March, followed by a full Bilateral Trade Agreement later in the year. The preliminary framework, announced in February 2026, reduced US tariffs on Indian imports from 50% to 18%, in exchange for India pledging to halt Russian crude imports, lower duties on US goods, and commit to $500 billion in American purchases over five years. Following the Supreme Court ruling, President Trump imposed a 10% global tariff on all countries for 150 days under Section 122 of the Trade Act of 1974, effective February 24.
India says it will hold off on signing the trade deal for several months, four Indian government sources with direct knowledge of the matter told Reuters, though US officials say they expect India to honour its existing commitments.
More updates on India’s economy and markets will follow on PL Capital.
