US-India trade pact stalls as legal and tariff disputes linger ahead of Rubio's visit

Senator Marco Rubio is set to meet senior Indian officials next week, concentrating on investment and energy in Mumbai and Jamnagar, where Mukesh Ambani’s massive refining complex is located. The centerpiece of the visit, however, is the unresolved US-India interim trade deal that was outlined in February, promising to lower reciprocal tariffs from 25 % to 18 % and reduce Indian duties on various goods. Negotiations have stalled because court challenges to President Trump’s tariff plan undermined the reciprocal tariff basis, leaving the US offer’s value ambiguous, according to trade analyst Ajay Srivastava.

India also remains cautious about potential US actions such as investigations into unfair practices and a law permitting up to 100 % tariffs on nations buying Russian oil, though Trump recently waived those sanctions. Both sides have expressed optimism earlier in the year, but Finance Minister Nirmala Sitharaman now says talks have hit a plateau, and US Trade Representative Jamieson Greer says no announcement is imminent. Meanwhile, Indian exports to the US rose 21 % in August to $8.3 billion, highlighting the economic stakes of a delayed agreement.