U.S.–India trade talks postponed; higher tariff action signalled

Backdrop: Talks had aimed to resolve long-standing issues—market access in agriculture and dairy, digital trade rules, and customs procedures—while exploring cooperation in critical tech and clean energy supply chains.
The update: The U.S. has indicated steeper duties on certain imports. While product-wise details tend to evolve, the broad signal is tighter market access for a subset of goods. New schedules and any carve-outs or exemptions will be closely watched by industry.
Likely impact on India:

• Exporters: Pressure on margins and renegotiation of pricing clauses; diversification to alternative markets may accelerate.

• Currency & markets: Headline-driven volatility is possible; sectors directly exposed to U.S. demand could see near-term pressure while others remain insulated.
  Policy options: New Delhi could seek targeted relief lists, stage-wise implementation, or bilateral adjustments, and concurrently step up export-promotion measures for MSMEs.
  Outlook: The strategic relationship remains broad-based (defence, tech, mobility), so both sides have incentives to re-table negotiations. For businesses, the prudent course is hedging, flexible contracts, and scenario planning until clarity emerges on the exact tariff matrix.