The dynamics surrounding the proposed India–US trade agreement appear to have shifted following a major ruling by the US Supreme Court that struck down former President Donald Trump’s sweeping global tariff framework. The decision has introduced fresh uncertainty into ongoing trade negotiations and prompted several countries, including India, to reassess their positions. Against this evolving backdrop, US Commerce Secretary Howard Lutnick’s unannounced visit to New Delhi has drawn significant attention, particularly as it came shortly after the court verdict altered the negotiating landscape.
Only months earlier, Lutnick had publicly suggested that India would eventually concede to tariff pressure and move toward an agreement on US terms. However, developments since the court ruling appear to have changed the balance of leverage. Lutnick travelled quietly to Delhi and met Union Commerce Minister Piyush Goyal in a meeting that was not officially disclosed beforehand by either government. News of the visit became public only after Goyal shared details on social media, noting that discussions focused on expanding trade and economic cooperation. US envoy Sergio Gor also attended the meeting, though both sides released limited information about the specifics of the talks.
While official statements remained brief, references to trade and economic partnership strongly indicated that the proposed interim trade deal was central to the discussions. Images from the meeting suggested a cordial atmosphere, signalling that both sides were continuing dialogue despite the uncertainty created by the court’s decision. Observers noted that the tone contrasted with earlier phases of negotiation, when tariff pressure formed a key element of Washington’s bargaining strategy.
The timing of Lutnick’s visit is widely viewed as significant because Trump’s tariff policy had previously been used as leverage to secure trade concessions from multiple countries. With the Supreme Court striking down those tariffs, several nations that had entered agreements with the United States are now reconsidering their commitments. India, in response to the new situation, postponed a scheduled visit by its trade delegation to Washington that was intended to finalise remaining deal terms. The ruling has effectively reopened negotiating space for New Delhi, potentially allowing it to push for more favourable conditions.
The rapid shift in circumstances has reportedly frustrated Trump, who warned countries against revisiting trade commitments following the court decision. In a public statement, he cautioned that nations attempting to renegotiate could face higher tariffs if future measures were implemented. Despite the uncertainty, India has indicated that it does not intend to withdraw from negotiations but is adopting a cautious wait-and-watch approach while assessing the implications of the legal ruling.
At present, Indian exports to the United States face tariffs averaging around 13 percent, combining duties imposed under Section 122 and most-favoured-nation rates. Under the earlier proposed arrangement, tariff levels were expected to be adjusted from previously threatened higher rates, including the removal of additional penalties linked to India’s purchase of Russian oil. With the legal basis for those tariffs now under question, the framework of the proposed agreement may require reassessment.
Lutnick’s discreet visit to Delhi therefore carries broader diplomatic and economic significance, signalling ongoing engagement at a sensitive moment in negotiations. Whether the discussions will lead to renegotiation or simply recalibration of the agreement remains uncertain, but the meeting underscores that both countries are attempting to navigate a rapidly changing trade environment shaped by legal, political, and strategic developments.
