India to hold off on US trade deal amid new probe, sources say [View all]

Source: Reuters

March 13, 2026 4:13 AM EDT Updated 3 hours ago


NEW DELHI, March 13 (Reuters) - India will hold off on signing a trade deal with the United ​States for several months, four Indian sources said, as fresh investigations by President Donald Trump’s administration into what it calls excess industrial capacity ‌among trading partners add new friction after an early understanding, opens new tab last month.

New Delhi had initially expected to sign an interim deal in March, followed by a full deal later, after Trump agreed in early February to cut punishing U.S. tariffs on Indian imports in return for commitments including halting Russian oil imports, lowering duties on U.S. goods and pledging to buy $500 billion worth of American products.

That ​timeline could now slip by several months, the sources said, although U.S. officials say they expect India to honour its commitments. The Indian sources, all ​government officials with direct knowledge of the matter or briefed on it, declined to be named because they were not authorised ⁠to speak to media.

A spokesperson from India's trade ministry denied any hold off in bilateral engagement. "It is reiterated that the two sides remain engaged for a mutually beneficial ​trade agreement," the spokesperson added, without offering details on formal signing of the deal. A White House official said the U.S. was continuing to work with India on finalising ​a deal.

Read more: https://www.reuters.com/world/india/india-hold-off-us-trade-deal-amid-new-probe-sources-say-2026-03-13/