The Central government has said it is holding regular consultations with farmers, agricultural exporters, industry representatives, and state governments to assess the impact of tariffs imposed by the United States and to safeguard India's trade interests.

Responding to a question in the Rajya Sabha on Friday, Minister of State for Commerce and Industry Jitin Prasada said the government is closely monitoring recent developments while continuing negotiations with the US on a proposed Bilateral Trade Agreement (BTA).

Government Consulting Key Stakeholders

In a written reply to Parliament, Prasada stated that the Centre remains in continuous dialogue with stakeholders affected by US import tariffs.

According to the minister, consultations are being held with:

• Farmers and farmer organisations
• Agricultural exporters
• Industry associations
• Export promotion councils
• Concerned ministries and departments
• State governments

He said inputs received from these groups are being considered to ensure India's commercial and agricultural interests are protected during trade negotiations.

India-US Trade Talks Continue

The minister informed Parliament that discussions on the proposed India-US Bilateral Trade Agreement remain active.

Negotiations began after the meeting between Indian and US leaders in February 2025, when both countries announced the "Mission 500" initiative, aiming to increase bilateral trade to $500 billion by 2030.

Since then, both sides have held multiple rounds of negotiations.

Key meetings have taken place in:

• Washington, DC (April 20–22, 2026)
• New Delhi (June 1–4, 2026)
• New Delhi during the visit of the US Trade Representative (June 22–24, 2026)

Prasada said the government continues to engage with US officials to move the negotiations forward.

Interim Trade Framework Already Announced

The two countries announced a framework for an interim trade arrangement on February 2, 2026, as part of ongoing efforts to strengthen economic ties.

The minister noted that the proposed Bilateral Trade Agreement is expected to deepen cooperation across several sectors while addressing market access concerns for both countries.

US Tariff Developments

Prasada also referred to recent developments in US trade policy.

He noted that a US Supreme Court judgment dated February 20, 2026, invalidated the reciprocal tariffs that had previously been imposed, meaning those measures are no longer in effect.

However, the US administration has continued to impose tariffs under separate legal provisions.

According to the government, the United States has issued Executive Orders imposing 10% tariffs on certain imported products under Section 122 of the US Trade Act of 1974.

Separately, the Office of the US Trade Representative (USTR) announced an additional 10% tariff on certain imports from India following an investigation under Section 301 of the US Trade Act of 1974. The US administration said the action was part of a broader initiative targeting products allegedly linked to forced labour concerns.

Government Monitoring Impact

The Centre said it is carefully studying the implications of these measures on Indian exports and domestic industries.

Officials indicated that protecting farmers, exporters, and businesses remains a priority while negotiations with Washington continue.

The government reiterated that it will continue engaging with stakeholders and pursue a balanced trade agreement that safeguards India's economic interests while expanding bilateral trade with the United States.

The comments come amid ongoing negotiations between India and the United States aimed at resolving long-standing trade issues and strengthening economic cooperation.

Following a phone conversation between Trump and Modi in February, the two countries issued a joint statement outlining the framework for the first phase of a Bilateral Trade Agreement (BTA), also referred to as an interim trade deal.

Under that framework, the United States agreed in principle to lower tariffs on certain Indian goods from 50% to 18%.

Recent Negotiations in New Delhi

Trade officials from both countries held four days of discussions in New Delhi from June 1 to June 4. Representatives from the Office of the United States Trade Representative (USTR) met Indian officials to discuss:

• Trade in goods

• Customs procedures

• Trade facilitation measures

• Non-tariff barriers

• Economic security cooperation

Both sides described the talks as productive and said negotiations are continuing to finalise a mutually beneficial interim agreement.

Challenges Still Remain

Despite signs of progress, some uncertainty remains. The Trump administration is considering additional tariffs on imports from several economies, including India.

A proposed review under Section 301 of the US Trade Act of 1974 could lead to extra duties on imports from countries that the United States believes have not taken adequate measures against goods linked to forced labour.

India, along with China, Japan, South Korea, the United Kingdom, Bangladesh and Vietnam, is among the economies included in the review.

In a significant development that has sent ripples through global commerce, India and the United States have postponed their crucial trade negotiator meeting scheduled for this week in Washington DC. The decision comes as both sides scramble to assess the implications of a seismic US Supreme Court ruling that struck down President Donald Trump's tariff regime, followed by his immediate imposition of a flat 15% tariff on all trading partners .

Why the Talks Were Put on Hold

The Indian team, led by chief negotiator Darpan Jain, was slated to depart for a three-day meeting beginning February 23 to finalize the legal text of an interim bilateral trade agreement . That visit has now been paused.

Official sources confirmed to multiple news agencies that both nations mutually agreed to reschedule. "The two sides are of the view that the proposed visit of the Indian chief negotiator and the team be scheduled after each side has had the time to evaluate the latest developments and their implications," a commerce ministry source told PTI .

The Supreme Court Earthquake

The postponement traces directly to Friday's landmark 6-3 Supreme Court decision, which delivered a stinging rebuke to Trump's trade agenda. The court ruled that the president had overstepped his authority by using the International Emergency Economic Powers Act (IEEPA) of 1977—a law designed for sanctions and embargoes—to impose sweeping "reciprocal" tariffs .

Chief Justice John Roberts delivered the decisive opinion: "Based on two words separated by 16 others—'regulate' and 'importation'—the President asserts the independent power to impose tariffs on imports from any country, of any product, at any rate, for any amount of time. Those words cannot bear such weight" .

Trump's Rapid Response

Within hours of the ruling, Trump pivoted sharply. He announced a 10% global tariff under Section 122 of the Trade Act of 1974—then dramatically raised it to 15% on Saturday, the maximum permitted under that provision .

Unlike the struck-down IEEPA tariffs, this new 15% levy comes with critical limitations: it's temporary (capped at 150 days unless Congress approves extension) and applies uniformly to all nations .

What This Means for India

Here's where the math gets interesting for Indian exporters. Under the February 7 framework announced by Prime Minister Narendra Modi and President Trump, India was set to receive a reciprocal tariff rate of 18%—down from the punishing 50% cumulative duties (25% reciprocal plus 25% Russian oil penalty) imposed earlier .

Now, without any trade agreement and without offering any concessions, India automatically lands at 15%—actually lower than the negotiated rate . The joint statement itself contains a crucial clause: "In the event of any changes to the agreed upon tariffs of either country, the United States and India agree that the other country may modify its commitments" .

Experts: India Should Recalibrate

Trade analysts suggest this changes everything. Ajay Srivastava of the Global Trade Research Initiative argues India should reconsider entirely: "In exchange for an 18% reciprocal tariff rate, India was expected to offer major concessions—cutting tariffs, aligning economic policies with U.S. interests, easing regulations. Now, even without a trade agreement, without making any sacrifices, India faces a 15% tariff. The negotiated arrangement has become burdensome and one-sided" .

Abhijit Das, former head of the Centre for WTO Studies, offered a more measured view: "The Supreme Court decision eases the pressure on us to offer concessions in order to secure lower tariffs compared to our competitors. Whether our negotiators are able to leverage this remains to be seen" .

Sectoral Impact: Relief and Caution

For India's labor-intensive sectors, the reaction is mixed but cautiously optimistic.

Kama Jewelry managing director Colin Shah called the tariff revocation with a 15% surcharge "a major relief to Indian gems and jewellery exporters," noting it would address the demand-supply vacuum created by earlier steep duties .

Textile exporters remain wary. Confederation of Indian Textile Industry chairman Ashwin Chandran said the developments "have cast a fresh spell of uncertainty," emphasizing that clarity on the interim deal's terms is urgently needed since the US remains India's single-largest textile market .

Chennai-based leather exporter Israr Ahmed struck a pragmatic note: "After the duty correction from 50% to 18%, prospects improved. Now with 15% global tariffs, we're on par with any nation. We just need to ensure India doesn't face additional tariffs under Section 301 or 232. Early closure of the bilateral agreement would help" .

What About Refunds?

A fascinating subplot involves potential refunds of the "illegal" tariffs collected since 2025. The US has gathered over $175 billion in tariffs, with more than 1,000 lawsuits already filed by American importers seeking reimbursement .

Some Indian exporters who shared the tariff burden with their US buyers might eventually recover portions of those payments—though Trump himself predicted this will "end up being in court for the next five years" .

The Road Ahead

The 15% tariff under Section 122 is temporary by design, expiring after 150 days unless Congress intervenes. Treasury Secretary Scott Bessent has signaled the administration will explore other authorities—Sections 232, 301, and 122—to maintain pressure on trading partners .

For India, the path forward requires careful navigation. The unchanged commitment from both sides to pursue a broader trade agreement remains, but the negotiating leverage has shifted. As one government official candidly admitted, waiting out the IEEPA litigation wasn't feasible—Trump had made the call, and the joint statement was already issued. But now, with the legal landscape transformed, Indian negotiators have room to breathe .

Bottom Line

The India-US trade relationship has entered uncharted waters. What began as a straightforward negotiation toward an interim deal has morphed into a complex recalibration exercise, with fundamental assumptions overturned by judicial intervention.

For now, exporters should watch closely as their governments hit the reset button—and hope the eventual outcome delivers the predictability that businesses crave.