After the US launched a probe under Section 301 (B) of the Trade Act of 1974 into more than a dozen countries, including India, citing ‘excess industrial capacity among trading partners’, India is likely to hold the India-US Trade deal.
India plans to hold off signing a trade deal with the United States for several months, four Indian sources revealed, amid fresh investigations launched by President Donald Trump’s administration, according to a report by Reuters.
Initially, the India-US interim trade deal was expected to be signed in March 2026, but it is likely to be put on hold after the US probe.
Reuters cited four sources, revealing that the timeline can now go down to several months.
India and the United States, in February 2026, announced an interim trade deal after months of tariffs, and with a framework reducing US tariffs on Indian imports from 50% to 18%.
India pledged to halt Russian crude imports, cut duties on US goods, and commit to $500 billion in American purchases.
Although the report also cites U.S officials, saying that they expect India to honour its commitments, four Indian government sources with direct knowledge revealed plans to delay signing the trade deal for several months amid fresh Trump administration probes.
The US has initiated Section 301(b) investigations under the 1974 Trade Act against over a dozen countries, including India and China, citing structural excess capacity and overproduction in key manufacturing sectors.
This marks the Trump administration’s first such probe since the US Supreme Court last month ruled his reciprocal tariffs under the International Emergency Economic Powers Act illegal.
Launched on March 11, the United States Trade Representative (USTR) will open public comment dockets on March 17, with Section 301 Committee hearings set for May 5. New tariffs on India and others could follow after May.
The trade deal negotiations lost track after the US Supreme Court ruling, which struck down President Trump’s tariffs in late February, as per a Reuters report.
With the war in the Gulf, no substantial developments have taken place with Washington is occupied in war.
