India delays U.S. trade talks after Supreme Court rejects Trump tariffs, source says


An attendee holds U.S. and India's flags as they gather on the South Lawn of the White House in Washington, U.S., June 22, 2023. REUTERS/Kevin Lamarque/File Photo

NEW DELHI, Feb ⁠22 (Reuters) - India has delayed plans to send a trade delegation to ⁠Washington this week, chiefly because of uncertainty after the U.S. Supreme ‌Court struck down tariffs imposed by President Donald Trump, a source in its trade ministry said on Sunday.

One of the first concrete reactions among Asian nations to the decision, it follows ​Trump's move on Saturday to levy a temporary ⁠tariff of 15%, the maximum ⁠allowed by law, on U.S. imports from all countries, following the court's rejection.

"The ⁠decision ‌to defer the visit was taken after discussions between officials of the two countries," said the source, who sought anonymity as the matter ⁠is a sensitive one. "No new date for the visit ​has been decided."

The delay ‌came mainly from the uncertainty over tariffs following Friday's judgment, the ⁠source added.

The delegation ​had been set to leave on Sunday for talks to finalise an interim trade deal, after both countries agreed on a framework for Washington to cut punitive tariffs ⁠of 25% on some Indian exports linked ​to New Delhi’s Russian oil purchases.

U.S. tariffs on Indian goods were set to be cut to 18%, while India agreed to buy U.S. items worth $500 billion over ⁠five years, ranging from energy supplies to aircraft and parts, precious metals and technology products.

India's opposition Congress party had called for the interim pact to be put on hold, urging a renegotiation and questioning Prime Minister Narendra Modi’s decision ​to issue a joint statement before the court’s ⁠ruling.

On Saturday, the Indian trade ministry said it was studying the implications of the ​judgment and later U.S. announcements.

Last week, Trade Minister ‌Piyush Goyal said the interim pact could ​take effect in April, after outstanding issues were resolved during the delegation’s visit to Washington.

(Reporting by Manoj Kumar; Editing by Clarence Fernandez)

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