Subscribe to the Bombay Chartered Accountant Journal Subscribe Now!

March 2026

Bilateralism In An Era Of Protectionism – The India–Us Trade Deal In Perspective

By Devinder Bagia, Advocate
Reading Time 22 mins

The proposed India–US Trade Deal emerges at a time of heightened global trade turbulence marked by tariff escalations, supply chain fragmentation, and strategic energy realignments. Against the backdrop of intensified tariff-led negotiations under the Trump administration, both countries have engaged in calibrated discussions aimed at restructuring bilateral trade. This article examines broad and sector-specific trade trends, tariff diplomacy, energy considerations, benefits of the proposed India-US trade deal and a brief analysis of the recent Supreme Court of the United States (‘SCOTUS’) decision invalidating the reciprocal tariffs imposed by the Trump administration under the IEEPA. From an Indian perspective, the article further evaluates the implications of reciprocal concessions on commodities included in the trade deal, the strategic re-positioning of India in the global supply chains involving the US, and diversification of India’s export markets as a by-product of increased US tariffs over the last year. The analysis concludes that the proposed arrangement reflects not merely tariff adjustment, but a broader strategic recalibration within an increasingly fragmented global trade order.

INTRODUCTION

The announcement of the India-US Joint Statement on February 6, 2026,1 marked a watershed moment in a bilateral relationship that ha

You May Also Like