Sitharaman says 'too early to comment', commerce ministry reviewing next step on US trade talks

Indian Prime Minister Narendra Modi; US President Donald Trump

• Sitharaman says it's too early to comment on US trade talks
• India's trade strategy unchanged amid global uncertainty
• US imposes new 15% import tariff, affecting India's exports

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Finance minister Nirmala Sitharaman said on February 23 it is a “a bit too early” to comment on the next phase of India’s trade negotiations with the US. The commerce ministry is reviewing the situation and its delegation would decide the timing of further engagement with Washington.

Sitharaman was cautious in responding to a question on recent developments in the US and their implications for India’s trade discussions.

“The commerce ministry is reviewing the situation. The delegation will have to take a call on when they are going to go for further negotiations. It’s a bit too early for me to comment,” she said.

On February 20, the US Supreme Court struck down the emergency tariffs but the Trump administration slapped 15 percent duty on trading partners, adding to uncertainty.

Sitharaman and RBI Governor Sanjay Malhotra were interacting with the media after the customary Post Budget Board of Directors meeting at RBI on February 23.

Uncertainty remains a constant concern

The minister framed the issue within the broader context of global economic uncertainty, emphasising that unpredictability is neither new nor confined to any single trade relationship.

“Uncertainties have continued to be a worry always. And I wish whenever the agreement gets done, and I don’t see that being the only reason to abate any uncertainty. Uncertainties can come and go. So that’s alright,” Sitharaman said in reply to Moneycontrol’s query if the global uncertainty has increased.

India’s trade policy direction intact

Even as she declined to elaborate on the US-specific timeline, Sitharaman stressed that India’s broader trade strategy remains unchanged.

“We are on a very clear path of wanting to have trade deals done. We have done it with the European Free Trade Association (EFTA) countries, we have done it with Australia, we have done it with New Zealand, with UAE, with Qatar, with Oman, and also with the United Kingdom, now with the EU,” she said.

“Therefore our attempt to have a trade agreement will go on with countries, and therefore because we want the Indian economy to have the advantage of trading globally and being able to reach global markets. So that will go on.”

The US Supreme Court held that the International Emergency Economic Powers Act (IEEPA), under which President Donald Trump imposed tariffs, does not authorise sweeping import duties.

Within hours of the ruling, Trump introduced a new global import surcharge of 10 percent and then raised it to 15 percent under Section 122 of the Trade Act of 1974, effectively reinstating broad tariff coverage on imports while circumventing the struck-down emergency authority.

This shift meant that countries, including India, that were previously facing high emergency tariffs saw those levies replaced with the new 15 percent tariff, adding to policy uncertainty around trade relations and tariff rates.