Impact of Modi Trump talk a cause for worry for Farmers

[Dalvinder Singh Grewal]

Impact of Modi-Trump Talk: A Cause for Worry for Farmers​

India and the United States agreed on Feb 03, 2026, to a trade deal under which Washington will bring down the reciprocal tariff on Indian goods to 18 percent from the current 25 percent, US President Donald Trump said on Monday after a phone conversation with Prime Minister Narendra Modi. Main features of the talk include:

• The US will reduce reciprocal tariffs on Indian goods from 25% to 18%.​
• India will reduce tariffs and non-tariff barriers against the US to zero.​
• India will increase purchases of American energy, technology, agricultural, and coal products.​
• Modi and Trump discussed ending the war between Russia and Ukraine.​

The prime minister said he was delighted that 'Made in India' products will now have a reduced tariff of 18 percent.
'Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18 percent. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,' Modi said. The prime minister said when two large economies and the world's largest democracies work together, it benefits the people and 'unlocks immense opportunities for mutually beneficial cooperation.' 'President Trump's leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace,' he said on X.

Modi noted that he looked forward to working closely with Trump to take the bilateral partnership to unprecedented heights, without mentioning many of the other issues that figured in Trump's post on social media.​

Modi agreed to stop buying Russian oil: Trump​

Trump said India will move forward to reduce 'tariffs and non-tariff barriers' against the US to zero, adding New Delhi would buy American goods, including energy, worth more than $500 billion. 'Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a trade deal between the United States and India, whereby the United States will charge a reduced reciprocal tariff, lowering it from 25 percent to 18 percent,' the US president said on social media. India will 'likewise move forward to reduce their tariffs and non-tariff barriers against the United States to zero,' he said.​

Trump said Modi also committed to buying American goods at a much higher level, in addition to over $500 billion dollars of US energy, technology, agricultural, coal, and many other products.​

'Our amazing relationship with India will be even stronger going forward. "Prime Minister Modi and I are two people that get things done, something that cannot be said for most," he said.
In his remarks, Modi said, 'When two large economies and the world's largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation."
'I look forward to working closely with him to take our partnership to unprecedented heights,' he added.
Trump said he and Modi also discussed ending the war between Russia and Ukraine.
'He agreed to stop buying Russian oil and to buy much more from the United States and, potentially, Venezuela,' the US president said. 'This will help end the war in Ukraine, which is taking place right now, with thousands of people dying each and every week,' Trump said.
Trump and Modi last spoke on the phone in October 2025. The two leaders had agreed at a meeting in February last year to finalize the first tranche of a bilateral trade agreement by the autumn. Though the two sides held several rounds of negotiations, forward movement on the trade deal stalled after Trump imposed 50 percent tariffs on Indian goods, including the 25 percent punitive tariffs for India's procurement of Russian crude oil.
The Modi-Trump phone talks came on a day External Affairs Minister S. Jaishankar traveled to Washington, DC.
India now has lower tariffs compared to competing export economies, officials said.
They cited 19 percent American tariffs on Indonesia, 20 percent on Vietnam, 20 percent on Bangladesh, and 34 percent on China. Official sources last week said India and the US have made 'very significant' progress in the negotiations for the trade deal.

A major worry for Indian farmers is opening agriculture for US markets, which may make agriculture in India unviable due to the dumping of cheap products from the USA.​

Another cause of worry is the increase in rates of oil since India has been buying oil from Russia at cheaper rates, which it will discontinue as per the talk.
It is also a matter of worry that Trump has been successful in getting these two demands accepted despite stiff resistance by India. Has Trump's pressure started working on India?

​

 

[Dalvinder Singh Grewal]

'Trump says India will buy over $500 billion of US goods.' 'At present, India's annual imports of goods and energy from the US are under $50 billion.' 'Reaching $500 billion would likely require more than 20 years, suggesting the figure refers to a long-term aspiration rather than a near-term commitment.'

• 'The Truth Social post leaves major questions unanswered, like what products are covered, what the timelines are, and whether India has really agreed to zero tariffs and zero non-tariff barriers, especially in sensitive areas like agriculture and regulated imports.'
• 'Trump claims India will reduce tariffs and non-tariff barriers on US products to zero, but he does not specify how many products are covered under India's commitment.'
• 'India has previously resisted opening sensitive sectors such as food grains, genetically modified products, and other regulated imports.'

"Until there is a joint statement, negotiated text, and clarity on enforcement, this should be seen as a political signal -- not a final deal. So, what is needed is caution, and not celebration,"
US President Trump said on Truth Social that the United States had reached a trade deal with India after a call with Prime Minister Modi. According to Trump, Modi agreed to stop buying Russian oil and increase purchases from the United States and Venezuela.
Trump said that, at Modi's request, the US had agreed to immediately reduce its 'reciprocal tariff' on Indian goods from 25% to 18%. In return, India would move to cut its tariffs and non-tariff barriers on US products to zero. Trump also said Modi committed to Buy American at much higher levels, including purchases of more than $500 billion worth of US energy, technology, agricultural products, coal, and other goods.

Trump's Truth Social post leaves several key points unclear. Trump said US tariffs would be reduced from 25% to 18%. However, because the post also mentioned India stopping Russian oil purchases, earlier linked to punitive tariffs, it is unclear whether the cut is actually from 50% to 18%, or whether Trump misstated the original tariff level. The US later clarified that tariffs are indeed being reduced from 50% to 18%. The US has already offered reciprocal tariffs -- @10% to the UK, @15% to the EU and Japan, @19% to Indonesia and Malaysia and @20% to Bangladesh and Vietnam in respective trade deals that took place between May and October 2025. These tariffs are over and above MFN (Most Favoured Nation) tariffs except for the EU. For the EU, if a product's MFN tariff is up to 15%, the combined reciprocal + MFN tariff will be capped at 15%. But if a product's MFN tariff is above 15%, the existing MFN tariff will continue to apply.
Even after the trade deal, US Section 232 tariffs on steel, aluminium, copper etc will remain @50% and on few auto components @25%. Also zero tariffs for pharmaceuticals, aircraft and parts, some mechanical and electronic components will continue.
Trump claims India will reduce tariffs and non-tariff barriers on US products to zero, but he does not specify how many products are covered under India's commitment.
India has previously resisted opening sensitive sectors such as food grains, genetically modified products, and other regulated imports.
Trump says India will buy over $500 billion of US goods. At present, India's annual imports of goods and energy from the US are under $50 billion. Reaching $500 billion would likely require more than 20 years, suggesting the figure refers to a long-term aspiration rather than a near-term commitment. In this scenario, India should not rush to celebrate President Trump's trade announcement.
The Truth Social post leaves major questions unanswered, like what products are covered, what the timelines are, and whether India has really agreed to zero tariffs and zero non-tariff barriers, especially in sensitive areas like agriculture and regulated imports.
The headline figure of $500 billion in US purchases is also unclear. India currently imports less than $50 billion a year from the US, suggesting this is more an aspiration than a firm commitment.
Until there is a joint statement, negotiated text, and clarity on enforcement, this should be seen as a political signal -- not a final deal. So, what is needed is caution, and not celebration.
The deal covers 23% of the world's GDP; $20 trillion of the EU and $4.2 trillion of India. It covers 25% of the global population: India's 1.4 billion, EU's 450 million. Of these 2 billion people, 1 billion are middle to high-end consumers. So based on this statistics, we can say the deal is very big.
Next, our bilateral engagement with the EU is fairly high. We export and import $210 billion worth of goods and services. So, it will not be a very difficult problem to take it from this space to a higher space. That's why you can call it a significant deal. India has given maximum concessions to the EU, and it has never allowed so many concessions to any other FTA (Free Trade Agreement) partner so far.

On market access, the EU will cut or eliminate tariffs on 98% of Indian goods. India's main gains lie in labour-intensive sectors where tariffs are still high. The biggest beneficiaries will be garments and footwear, along with marine products, gems and jewellery, handicrafts, chemicals and machinery. You have to remember that the EU is a developed country and in developed countries, tariffs are generally low. And on items from India, tariffs are high. For example, on most labour intensive goods like textiles and garments, there is high tariff. 12% on leather and leather shoes and 8% to 18% on marine products. Because of these high tariffs, we were facing some problems. Yes, we were exporting to the EU but we are facing stiff competition from other suppliers. For example, because Vietnam has an FTA with EU, their goods can enter at zero tariff in the EU.

Bangladesh has a GSP (Generalised System of Preferences) arrangement with the EU. So, goods from Bangladesh can enter at zero tariff in the EU. But Indian exporters are paying high tariffs. Now, with this FTA, tariff will be zero once it's implemented. So, the tariff disability compared to our competing countries like Vietnam or Bangladesh will disappear, and we can export much more.

These goods are badly hit because of the high tariffs imposed on India by the US. With this FTA under the EU, they will recover. But there is one small problem. The problem is that our goods to the EU are being hit right now because of high tariffs. The EU agreement will be implemented only after an year. So, the goods which are hit by the US will get a push because of the EU trade deal. But for that to happen, it will take one year. Day one will start after one year. Now the documents will be legally tested, scrubbed an Fd then the deal will be signed in 1 or 2 months' time. After that, the deal will go to the parliaments of all 27 EU countries, the EU secretariat and India's Cabinet. It may happen fast in India, but it takes a lot of time for the EU. Thus, it will take at least one year for the deal to happen. We have signed the agreement with the UK. It is still not rectified. These trade deals take a lot of time to get implemented.
Textiles will remain affecrted. They were exporting earlier also to the EU, and they will continue to export to the EU at high tariffs.
Vietnam and EU have an FTA. That doesn't mean Vietnam can just import Chinese goods and export them to the EU, and gain the advantage. Vietnam has to substantially process the Chinese imports into new goods, and then only it can be exported to the EU as Vietnam goods. Vietnam just cannot import from China and export to EU. That's not allowed.

Right now, we are facing a loss in exports because of the 50% tariff imposed by Trump. For example, between May and December 2025, our exports are down by 22%. For the EU deal to get implemented, it will take at least one more year. So, only after one year, the losses due to high tariffs by the US will be compensated. The losses from the US are happening right now. But gains from the EU will happen only after one year. That's the issue.

Overall, how is the export situation in India right now is that Exports to the US were down by 22% between May and December 2025. But exports to the rest of the world are up by 5.5%. That means there is some diversification that is taking place, and it is good. Let's hope we will sign a deal with the US very soon. Yes, after one year, most of the negativities arising from the US loss will be wiped out because of the EU trade deal. India will cut or eliminate tariffs on about 97% of EU exports, with reductions phased in over 7 to 10 years. Duties on wines will fall from 150% to 20% to 30%, spirits to 40%, beer from 110% to 50%, and cars from 100% to 125% to 10% for up to 250,000 vehicles.

India will also move to zero tariffs on a wide range of agri-food and consumer products such as sheep meat, fruit juices, bakery items, pasta, chocolate and pet food, and phase out duties on most processed foods, chemicals, machinery, electronics and aircraft.
India and the EU are at different stages of development. India makes garments and textiles and shoes, but EU don't make it. So, more exports of these products from India can replace exports from other countries because of the deal. Because of these exports from India, the local manufacturer in EU also will not be hurt. Similarly, EU makes aircraft and high-end machinery which we don't makeSo, whatever EU exports to us, our industry will not be hurt. The same is the case with most other products too. So, this is a win-win for both EU and India.
I am an exporter and my export grows because of the deal, then I will have to make more of those things.

When I make more, it will support the Make In India program.So, more export means more production of goods.

With Trump threatening and imposing tariffs on many countries, the global trade situation is going to evolve over the next few months.

Globally, two countries are creating problems. Most of the problem is created by the US because Trump is imposing illegal WTO inconsistent tariffs on most countries, the highest on India and Brazil. Second aspect is, most of the countries have become dependent on China for their supplies. For example, China now produces 85% of world's laptops, and more than 80% of the world's smartphones. If a COVID like situation arises again, and there is some disruption in China, then the laptop supplies, the smartphone supplies and many other supplies to the world will stop. That's why there should be more than one manufacturing centre in the world. That's why China plus another country is being talked about now. Most of the countries are realising it now.

substitution for China can happen For companies to move away from China, they need two factors.
One is, how much the country where they are moving to, can absorb their production. India with its huge market is an obvious attraction. But they fear moving to India because of India's high cost of doing business, which is 10% to 15% higher than China or Vietnam. If we can address this, then India can be a great destination for shifting of production out of China.

Region or country as another centre for manufacturing

Southeast Asia is a great destination. A lot of companies are already shifting to countries like Vietnam, Thailand, Malaysia, Indonesia, etc. Mexico also is a destination.

 

[Dalvinder Singh Grewal]

India, US to sign interim trade deal in March: Goyal​

Source: PTI : February 20, 2026 15:59 IST
To finalise the text of the first phase of the bilateral trade agreement, the chief negotiators of the two countries will meet in Washington, DC next week.

IMAGE: Union Minister Piyush Goyal speaks during the launch of Export Promotion Mission, in New Delhi on Friday. Photograph: ANI Video Grab

Key Points​

• India and the US are expected to sign an interim trade agreement in March, with implementation potentially starting in April.
• The agreement includes reciprocal duty concessions, with the US reducing tariffs on Indian goods from 25% to 18%.
• India has expressed interest in purchasing $500 billion of US energy products, aircraft, technology, and coking coal over the next five years.
• The trade deal aims to boost Indian exports in labor-intensive sectors like apparel, leather, and marine products.
• India has joined the US-led Pax Silica alliance to build a resilient supply chain for critical minerals.

An interim trade agreement between India and the United States is likely to be signed in March and operationalised in April, Commerce and Industry Minister Piyush Goyal said on Friday.
Earlier this month, India and the US released a joint statement announcing a framework for an interim trade agreement.

To finalise the text of the first phase of the bilateral trade agreement, the chief negotiators of the two countries will meet in Washington, DC next week.
The three-day meeting between the two teams will begin on February 23.
Goyal told reporters here that the pact is expected to be signed next month and may be implemented in April.
US Trade Representative (USTR) Jamieson Greer is likely to visit India in March to sign the agreement.
In an event at the AI Impact Summit here, US Ambassador Sergio Gor said that the India-US trade deal is set to be inked soon.
India on Friday joined the US-led strategic alliance Pax Silica, aimed at building a resilient supply chain for critical minerals.
"From the trade deal to Pax Silica to defence cooperation, the potential for our two nations to work together is truly limitless," Gor said in his remarks.
The joint statement, released separately by the two nations earlier this month, lays down the contours of the deal. These now need to be translated into a legal agreement, for which the two sides will meet next week.

Both sides to extend duty concessions​

The Indian team will be headed by chief negotiator Darpan Jain, who is a joint secretary in the Commerce Ministry.
Under the pact, both sides would extend duty concessions to each other on a number of goods traded between them.
The US has announced that it will reduce the reciprocal tariffs on Indian goods from 25 percent to 18 percent.
It has already eliminated the 25 percent punitive tariffs on India for buying Russian crude oil.
The move is a big relief to the domestic industry, as they were facing steep 50 percent tariffs by the US.
Goyal expressed hope that an executive order to cut the tariffs to 18 percent would be issued by the Trump administration this month.
While speaking at the launch of seven components of the Rs 25,060-crore export promotion mission (EPM), Goyal said the India-US trade agreement has opened huge business opportunities for Indian exporters.
He said that India has protected all the sensitive sectors, including agriculture.
"Now once that rate (50 percent tariff) comes out to be lower than any of our competitors, we are lower than anybody else who is an emerging market or a developing economy, and plus, having safeguarded all the sensitive sectors, it's a great win-win solution for both countries," he said.
The minister said that labor-intensive sectors like apparel, leather, and marine were suffering from high tariffs.

Political reactions to the deal​

He also criticised Congress leader Rahul Gandhi for raising concerns about the deal.
Stepping up his attack on the government over the interim US trade deal, Gandhi on Friday said the answer to why Prime Minister Narendra Modi agreed to a deal where India gives so much and appears to get so little and makes an 'abject surrender' lies in the 'grips' and 'chokes' placed on him.
Gandhi questioned why the government has agreed to increase US imports by $100 billion a year without a reciprocal promise.
"I think he (Gandhi) lives in a world very detached from reality. All of you here are exporters. Were you happy with the 50 percent tariff? Was your business prospering? Were your jobs safe? Was Tirupur able to export apparel? What was happening to your leather industry, where lakhs of workers are working? What had happened to our marine seafood exports? All labor-intensive sectors were suffering," he said.
He added that businesses will prosper at the 18 percent rate that India negotiated under the trade pact with the US.
It will help boost exports of gems and jewelry and spices also, he said. On imports from the US, Goyal said India needs high-tech devices like GPUs (Graphics Processing Units), coking coal, and aircraft.
"We need airplanes in India. As our steel production doubles and is slated to double from 140 million to 300 million tonnes in the next 5-6 years, huge investments, almost Rs 10 lakh crores investments, are in the pipeline in the steel industry. That steel will need coking coal.
"You are all businessmen in this room. Is it better to have two sources of a product or six sources of a product?" he asked.
India needs these products from trusted partners for its economic growth, the minister said, adding that exports will play an important role in the effort to push the country's growth.
"...very clearly, India is on the right track. We make sure that our sensitive defensive interests remain protected. All our agricultural produce in India remains protected from the markets where there is any competition. We ensure that we open our market for consumer benefit," he said.
Through this deal, he said, India has ensured the purchase of high-quality pharma products; 'super expensive and complicated' medical devices will come to India at lower or zero import duty.
"We are serving 1.4 billion consumers who are also a stakeholder in the development," he added.
According to the joint statement, India has expressed its intention to purchase $500 billion of US energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next five years.
The reciprocal tariffs on India are now among the lowest compared to its competitor nations.
These countries include China (35 percent), Thailand (19 percent), Myanmar (40 percent), Cambodia (19 percent), Indonesia (19 percent), Brazil (50 percent), and Vietnam (20 percent).
During the April-January period of this fiscal year, the country's exports to the US increased 5.85 percent to $72.46 billion, while imports rose 13.87 percent to $43.92 billion.

 

[Dalvinder Singh Grewal]

Blow to Trump as US Supreme Court strikes down his sweeping tariffs​

Source: ANI—February 20, 2026, 23:01 IST
The top court ruling is expected to have wide-ranging consequences for global trade, businesses, consumers, inflation trends, and household finances across the country.

In a major blow to US President Donald Trump's signature economic policy, the US Supreme Court on Friday invalidated most of his sweeping tariff measures, The Washington Post reported.​

Key Points​

• The US apex court held that the US President did not possess the authority to impose extensive import duties on goods from nearly all US trading partners​
• The verdict marks a notable shift from a series of recent wins for Trump at the Supreme Court​
• The financial implications of the ruling are substantial​

According to The Post, the US apex court held that the US president did not possess the authority under the 1977 International Emergency Economic Powers Act (IEEPA) to impose extensive import duties on goods from nearly all US trading partners.​

The ruling is expected to have wide-ranging consequences for global trade, businesses, consumers, inflation trends, and household finances across the country.

The verdict marks a notable shift from a series of recent wins for Trump at the Supreme Court. Over the past year, the justices had largely sided with the administration in interim orders, allowing policies such as a ban on transgender troops serving in the military, granting the United States DOGE Service access to sensitive data, and enabling significant cuts to the Education Department while legal challenges continued, The Washington Post reported.
The financial implications of the ruling are substantial. The tariffs in question cover trillions of dollars in trade, and the US government collected nearly $134 billion in levies through December 14 under the contested authority, The Washington Post reported.
According to estimates by the Tax Foundation, Trump's trade war will cost American households approximately $1,100 each in 2025, The Post reported.
The judgement came days after the United States and India announced that they have reached a framework for an interim agreement regarding reciprocal and mutually beneficial trade.
The framework reaffirmed the countries' commitment to the broader U.S.-India Bilateral Trade Agreement (BTA) negotiations, launched by President Donald Trump and Prime Minister Narendra Modi on February 13, 2025, which will include additional market access commitments and support more resilient supply chains.
A joint statement had said that the interim agreement between the United States and India will represent a historic milestone in our countries' partnership, demonstrating a common commitment to reciprocal and balanced trade based on mutual interests and concrete outcomes.
According to the joint statement, India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of U.S. food and agricultural products, including dried distillers' grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.
The United States will apply a reciprocal tariff rate of 18 percent under Executive Order 14257 of April 2, 2025, as amended, on originating goods of India, including textiles and apparel, leather and footwear, plastic and rubber, organic chemicals, home decor, artisanal products, and certain machinery, and, subject to the successful conclusion of the Interim Agreement, will remove the reciprocal tariff on a wide range of goods identified in the Potential Tariff Adjustments for Aligned Partners Annex to Executive Order 14346 of September 5, 2025, as amended, including generic pharmaceuticals, gems and diamonds, and aircraft parts.
The US had earlier imposed 50 percent tariff on Indian goods, including a 25 percent tariff for importing oil from Russia​

 

[Dalvinder Singh Grewal]

Angered at the Supreme Court of the US decision, Trump today has now levied a 10% tariff on all countries in the world. However, India will not be affected by this order.

 

[Dalvinder Singh Grewal]

Cong questions Modi over Trump's 'nothing changes for India' remark​

Source: PTI February 21, 2026 16:40 IST
Following the US Supreme Court's decision to strike down President Trump's global tariffs, the Congress party is urging Prime Minister Modi to halt and renegotiate the India-US interim trade agreement to safeguard Indian farmers' interests.
Key Points

• Jairam Ramesh calls for renegotiating the India-US trade deal to protect Indian farmers' interests and seek clarifications from the US.
• Congress questions the timing of the India-US trade deal announcement and its potential impact on Indian farmers.
• Rahul Gandhi accuses PM Modi of being 'compromised' in the India-US interim trade deal after the US Supreme Court ruling.
• The US Supreme Court struck down Trump's global tariffs, ruling that the president exceeded his authority in imposing the levies.

With the American Supreme Court striking down President Donald Trump's global tariffs, the Congress on Saturday demanded that Prime Minister Narendra Modi put the India-US interim trade agreement on hold and renegotiate the terms of the deal.
Congress general secretary in charge of communications Jairam Ramesh said the government must state categorically that there will be no import liberalization till clear-cut clarifications from the American side and ensure that Indian farmers' interests are not hurt.
Speaking with reporters in New Delhi, Ramesh sought clarifications from the government on the India-US interim trade deal and called for renegotiating the deal afresh. He asked Modi to clarify whether he agrees with Trump's statement that nothing changes in the trade deal with India.
Congress demands to put the DC-India trade deal on hold
Asserting that the India-US interim agreement will adversely affect farmers, Ramesh said the government should put this deal on hold till clarifications are made.
"We demand that the PM should categorically state that we will not carry out import liberalization after the Supreme Court decision, as there is a rethink in India's policy, and we will not carry out import liberalization till clarifications are made," Ramesh said.
"On February 2, President Trump made the announcement of the deal, stating that he is happy that a deal has been reached, and on the request of the PM, this is effective immediately," he said, adding that the chronology of events is important.
The first question that arises is why was the PM in a hurry to announce this, he said.
"We believe that this was connected with Rahul Gandhi's remarks in the Lok Sabha, raising the issue of China and former Army chief Naravane's book. We believe that in order to divert from that, PM Modi requested Trump to announce this," Ramesh said.

US SC Strikes Down Trump's Tariffs​

The US Supreme Court on Saturday struck down Trump's global tariffs, saying they are against the American Constitution, Ramesh said.
"Our second question is that when the PM, the commerce minister (Piyush Goyal), knew from December that any time (now) the Supreme Court verdict could come, many believed that it could be struck down. Why did you hurriedly strike a deal when you knew the verdict could go against Trump?" Ramesh said.
The 10 percent tariff would be imposed on imports, and as per law, this will be for 150 days, he said.
"Trump has also stated that nothing changes for the Indo-US deal. So we want to ask the PM, does he agree with his friend's statement that the verdict will have no impact on the deal?" Ramesh said.
The framework states that in the event of any changes from either side, the US and India agree that they can modify their commitments, Ramesh pointed out.

Rahul says, 'PM Compromised.'​

After the US Supreme Court struck down President Donald Trump's global tariffs, Congress leader Rahul Gandhi accused Prime Minister Narendra Modi of being "compromised," saying his "betrayal" in the India-US interim trade deal stood exposed.
The Congress has alleged that the trade deal had become an "ordeal" for the country subjected to by the prime minister's "desperation and surrender."
In a major setback to what was Trump's pivotal economic agenda in his second term, the US Supreme Court, in a 6-3 verdict written by Chief Justice John Roberts, 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.

US-India Trade Deal​

Earlier this month, as the US and India announced they reached a framework for an interim agreement on trade, Trump issued an executive order removing the 25 percent punitive tariffs imposed on India for its purchases of Russian oil, with the US president noting the commitment by New Delhi to stop directly or indirectly importing energy from Moscow and purchasing American energy products.
Under the trade deal, Washington would charge a reduced reciprocal tariff on New Delhi, lowering it from 25 percent to 18 percent.
Shortly after the court verdict, Trump asserted that there is "no change" in the trade deal with India.
"I think my relationship with India is fantastic, and we're doing trade with India... India was getting its oil from Russia. And they pulled way back at my request, because we want to settle that horrible war where 25,000 people are dying every month," Trump said at a news conference Friday in the White House.
Trump said his relationship with Prime Minister Modi "is great." He then went on to repeat the claim that he stopped the war between India and Pakistan last summer using tariffs.
When asked about the deal with India, Trump said, "Nothing changes. They'll be paying tariffs, and we will not be paying tariffs.
"This is a reversal for what it used to be, as you know, India—and I think Prime Minister Modi is a great gentleman, a great man, actually. But he was much smarter than the people that he was against in terms of the United States; he was ripping us off.
"So we made a deal with India. It's a fair deal now," Trump said.

 

[Dalvinder Singh Grewal]

Trump's tariff junked: What it means for Indian companies​

Source: PTI, February 21, 2026, 14:01 IST

The Trump administration on April 2, 2025, announced these duties on about 60 nations, including India. It was aimed at providing a level playing field to US exporters.​

Key Points​

• Normally, companies pass on these taxes to end users or consumers.​
• Indian goods will now face only a 10 percent reciprocal levy from February 24, 2026​
• India should re-evaluate the trade pact with the US: GTRI​
• Trump said nothing changes in the trade deal with India​
• The sectoral tariffs (steel, aluminium, copper—50%, and a few auto components—25%) will continue​

India will now face a lower reciprocal tariff of 10 percent, down from 25 percent, after US President Donald Trump announced a new global levy on items imported into America in the wake of the Supreme Court verdict against his sweeping duties on several nations.
A proclamation, dated February 20, was issued by the White House.
Here is a list of key pointers to explain the meaning of this announcement for Indian companies.​

TARIFF:​

These are customs or import duties that a country imposes on goods bought from other nations.
An importer has to pay this duty to the government.
Normally, companies pass on these taxes to end users or consumers.

Import duty makes goods expensive in the importing country.
Besides, a few other factors also play a role in this.​

RECIPROCAL TARIFFS (RT):​

The term was first used by the US.
The Trump administration on April 2, 2025, announced these duties on about 60 nations, including India.
It was aimed at providing a level playing field to US exporters.
For example, if a country charges X percent duty on US goods, America will charge the same on imports from that country.
These are additional import duties, which are imposed over and above the existing or MFN (most favoured nation) levies.​

NOW WHAT IS RT IN INDIA:​

On April 2, 2025, the US announced 26 percent reciprocal tariffs. Later in July, the US announced a 25 percent RT on Indian goods entering American markets from August 7, 2025.
In August last year, the Trump administration announced an additional 25 percent tariff on India for purchasing Russian crude oil, taking the total RT on India to 50 percent. Following agreement on a framework for an interim trade deal in February, the US announced that it will reduce the RT on India to 18 percent and remove the additional 25 percent punitive tariffs.
So at present, India's goods in the US are facing 25 percent RT.
With the US Supreme Court striking down President Donald Trump's global tariffs and Washington issuing a new order imposing a temporary 10 percent import surcharge, Indian goods will now face only a 10 percent reciprocal levy from February 24, 2026.
For instance, if a product faces a 5 percent MFN duty in America, an additional 10 percent will be imposed now, taking the effective duty to 15 percent.
Earlier, this was 5 plus 25 percent. Trump's proclamation, dated February 20, said, "I impose, for a period of 150 days, a temporary import surcharge of 10 percent ad valorem on articles imported into the United States, effective February 24, 2026," at 12:01 a.m. Eastern Standard Time.
"Instead of different RTs in different countries, it is 10 percent now on everyone for the goods that were covered under RTs," a source said.
From February 7 to February 24, 2026, the Russia-oil penalty was removed, reducing the additional duty to 25 percent.
The February 6 joint statement proposed lowering this reciprocal tariff to 18 percent, but the change has not yet been implemented.
Beginning February 24, 2026, a temporary across-the-board 10 percent tariff will apply for 150 days in addition to MFN duties, replacing the earlier reciprocal tariff structure.​

INDIA-US TRADE PACT:​

To finalize the legal text for the first phase of the bilateral trade agreement, the Indian team is scheduled to meet its counterparts in Washington on February 23, 2026.
Commerce and Industry Minister Piyush Goyal, on February 20, said that India and the US are expected to sign the deal next month, and it may be operationalized in April.​

EXPERT'S TAKE:​

Think tank GTRI said that, as the RT on Indian goods has come down to 10 percent from 25 percent, India should re-evaluate the trade pact with the US.
India agreed to reduce tariffs for the US based on Washington's decision to cut RT on India to 18 percent, but now the US has reduced the RT for all nations to 10 percent.
"Deals are not charity. Both sides must gain. Now, India's gains need fresh evaluation," GTRI founder Ajay Srivastava said.​

TRUMP ON DEAL WITH INDIA:​

Trump said nothing changes in the trade deal with India in the wake of the Supreme Court verdict against his sweeping tariffs, as he responded to the ruling by announcing an additional 10 percent global levy on items imported into the US.​

GOODS UNDER EXEMPTED CATEGORY:​

A fact sheet issued by the White House noted that some goods will not be subject to the temporary import duty because of the needs of the US economy or in order to ensure the duty more effectively addresses the fundamental international payments problems facing the United States.
The goods include certain critical minerals; metals used in currency and bullion; energy and energy products; natural resources and fertilizers that cannot be grown, mined, or otherwise produced in the United States or grown, mined, or otherwise produced in sufficient quantities to meet domestic demand; certain agricultural products, including beef, tomatoes, and oranges; and pharmaceuticals and pharmaceutical ingredients.
Other items are certain electronics; passenger vehicles; certain light trucks; certain medium- and heavy-duty vehicles; buses; and certain parts of passenger vehicles, light trucks, heavy-duty vehicles, buses, and certain aerospace products.​

SECTORAL TARIFFS ON INDIA:​

The sectoral tariffs (steel, aluminum, and copper—50 percent—and a few auto components—25 percent) will continue.​

WHY THE US IS IMPOSING TARIFFS:​

The US has alleged that it faces a significant trade deficit with India, blaming New Delhi for imposing high tariffs on American goods, which it says restricts US exports to the Indian market.​

BILATERAL TRADE:​

During 2021-25, the US was India's largest trading partner in goods.
The US accounts for about 18 percent of India's total exports, 6.22 percent in imports, and 10.73 percent in bilateral trade.
In 2024-25, the bilateral trade touched $186 billion ($86.5 billion in exports and $45.3 billion in imports).
With America, India had a trade surplus (the difference between imports and exports) of $41 billion in 2024-25.
It was $35.32 billion in 2023-24 and $27.7 billion in 2022-23.
In services, India exported an estimated $28.7 billion and imported $25.5 billion, adding a $3.2 billion surplus.
Altogether, India ran a total trade surplus of about $44.4 billion with the US.​

MAJOR TRADED PRODUCTS BETWEEN COUNTRIES:​

In 2024, India's main exports to the US included drug formulations and biologicals ($8.1 billion), telecom instruments ($6.5 billion), precious and semi-precious stones ($5.3 billion), petroleum products ($4.1 billion), vehicle and auto components ($2.8 billion), gold and other precious metal jewelry ($3.2 billion), ready-made garments of cotton, including accessories ($2.8 billion), and products of iron and steel ($2.7 billion). Imports included crude oil ($4.5 billion), petroleum products ($3.6 billion), coal and coke ($3.4 billion), cut and polished diamonds ($2.6 billion), electric machinery ($1.4 billion), aircraft, spacecraft, and parts ($1.3 billion), and gold ($1.3 billion). As per estimates, US services imports from India amounted to $40.6 billion in calendar year 2024, with computer/information services imports at $16.7 billion and business management/consulting at $7.5 billion.​

 

[Dalvinder Singh Grewal]

From 18% to 10%: Trump's new global levy brings relief for India​

February 21, 2026 11:21 IST
Trump has said he is imposing, for a period of 150 days, a 'temporary import surcharge of 10 percent ad valorem' on articles imported into the United States, effective February 24

Key Points​

• President Trump announced a new 10% global import surcharge, impacting trade relations.
• India's tariff rate to the US decreases from 18% to 10% under the new global levy.
• The US Supreme Court ruled against Trump's previous sweeping tariffs, citing presidential overreach.
• Trump claims tariffs were instrumental in resolving conflicts, including between India and Pakistan.
• Trump asserts his relationship with India remains strong despite trade adjustments.

India now faces a lower tariff rate of 10 percent, down from 18 percent, after US President Donald Trump announced a new global levy on items imported into America in the wake of the Supreme Court verdict against his sweeping tariffs.
In a proclamation titled 'Imposing a Temporary Import Surcharge to Address Fundamental International Payments Problems,' Trump said he is imposing, for a period of 150 days, a "temporary import surcharge of 10 percent ad valorem" on articles imported into the United States, effective February 24.

Given this new tariff rate of 10 percent, which will be applicable to countries around the world, Indian goods being imported into the US would no longer be subject to the 18 percent tariff rate that had been decided on following the announcement of a framework for an interim agreement on trade between India and the US.
In a major setback to Trump's pivotal economic agenda in his second term, the US Supreme Court, in a 6-3 verdict written by Chief Justice John Roberts, 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.
Earlier this month, as the US and India announced they reached a framework for an interim agreement on trade, Trump issued an executive order removing the 25 percent punitive tariffs imposed on India for its purchases of Russian oil, with the US president noting the commitment by New Delhi to stop directly or indirectly importing energy from Moscow and purchasing American energy products.
Under the trade deal, Washington would charge a reduced reciprocal tariff on New Delhi, lowering it from 25 percent to 18 percent.
Trump signed the proclamation "imposing a temporary import duty to address fundamental international payments problems and continue the Administration's work to rebalance our trade relationships to benefit American workers, farmers, and manufacturers."
A fact sheet issued by the White House said Trump is invoking his authority under Section 122 of the Trade Act of 1974, which "empowers the President to address certain fundamental international payment problems through surcharges and other special import restrictions."
The proclamation imposes, for a period of 150 days, a 10 percent ad valorem import duty on articles imported into the United States. The temporary import duty will take effect February 24 at 12:01 am Eastern Standard Time.
The fact sheet noted that some goods will not be subject to the temporary import duty because of the needs of the US economy or in order to ensure the duty more effectively addresses the fundamental international payments problems facing the United States.
The goods include certain critical minerals; metals used in currency and bullion; energy and energy products; natural resources and fertilizers that cannot be grown, mined, or otherwise produced in the United States or grown, mined, or otherwise produced in sufficient quantities to meet domestic demand; certain agricultural products, including beef, tomatoes, and oranges; pharmaceuticals and pharmaceutical ingredients; certain electronics; passenger vehicles; certain light trucks; certain medium and heavy-duty vehicles; buses; certain parts of passenger vehicles, light trucks, heavy-duty vehicles, and buses; and certain aerospace products.
Trump's reaction to the SC ruling
Trump lashed out at the Supreme Court justices who ruled against him, calling them "fools and lapdogs."
"The Supreme Court's ruling on tariffs is deeply disappointing, and I'm ashamed of certain members of the Court, absolutely ashamed for not having the courage to do what's right for our country," Trump said in a news conference at the White House on Friday, just hours after the verdict came in.
When asked whether the framework for an interim agreement on trade with India, expected to be signed soon, stands in the wake of the Supreme Court ruling, Trump said, "Nothing changes."
"Nothing changes. They'll be paying tariffs, and we will not be paying tariffs. So the deal with India is they pay tariffs. This is a reversal for what it used to be, as you know, India, and I think Prime Minister Modi is a great gentleman, a great man, actually, but he was much smarter than the people that he was against in terms of the United States; he was ripping us off. So we made a deal with India. It's a fair deal now, and we are not paying tariffs to them, and they are paying tariffs. We did a little flip," Trump said.
"The India deal is on; all the deals are on. We're just going to do it in a different way," Trump said.

Trump on US-India relations​

To another question on his relationship with India, he said, "I think my relationship with India is fantastic, and we're doing trade with India. India pulled out of Russia. India was getting its oil from Russia. And they pulled way back at my request, because we want to settle that horrible war where 25,000 people are dying every month," Trump said.
He said his relationship with Prime Minister Modi "is, I would say, great."
Trump then went on to repeat the claim that he stopped the war between India and Pakistan using tariffs.
"I also stopped the war between India and Pakistan. As you know, there were 10 planes that were shot down. That war was going and probably going nuclear. And just yesterday, the prime minister of Pakistan said President Trump saved 35 million lives by getting them to stop," Trump said.
"And I did it largely with tariffs. I said, 'Look, you're going to fight; that's fine, but you're not going to do business with the United States, and you're going to pay a 200 percent tariff to each country.' And they called up, and they said, "We have made peace," Trump said.
In his remarks at the press conference, Trump said he used tariffs to end the war between India and Pakistan as he lashed out at the Supreme Court for its decision to strike down his sweeping tariffs imposed on countries around the world.
"Tariffs have likewise been used to end five of the eight wars that I settled. I settled eight wars, whether you like it or not, including India, Pakistan, big ones, nuclear, and could have been nuclear," Trump said.