Sources: India to temporarily postpone signing a trade agreement with the US as a new investigation is launched

MaticHoleFiller · 2026-03-17T17:11:46+00:00

India will delay by several months signing a trade agreement with the United States due to the Trump administration's new investigation into excess capacity among its trading partners. Although both sides reached a preliminary consensus last month with an expected interim agreement signing in March, the timeline has now been pushed back.

MaticHoleFiller

2026-03-17 17:11:46

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Four Indian officials said India will delay signing a trade agreement with the United States by several months, as a new round of investigations by the Trump administration into what it calls excess capacity among its trading partners has added new friction after both sides reached a preliminary consensus last month.

India initially expected to sign a provisional agreement in March, followed by a full agreement. Previously, Trump agreed in early February to reduce punitive tariffs on Indian imports, in exchange for India’s commitments including halting imports of Russian oil, lowering tariffs on U.S. goods, and purchasing $500 billion worth of American products.

Sources familiar with the matter said this timeline could now be delayed by several months, although U.S. officials have expressed confidence that India will fulfill its commitments. These Indian officials are either directly involved or briefed on the matter but declined to be named, as they are not authorized to speak to the media.

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