India delays Washington trade visit as U.S. tariff policy shifts

India’s trade negotiators will reschedule their planned visit to Washington, D.C., aimed at firming up an interim trade deal with the U.S., a person familiar with the development told CNBC.

The development comes after the U.S. Supreme Court struck down U.S. President Donald Trump’s tariffs as illegal on Friday. Within hours, Trump invoked Section 122 of the Trade Act of 1974 to first impose a 10% global import tariff, before increasing that to 15%.

The “meeting will be rescheduled at a mutually convenient date,” the source told CNBC Sunday. India and the U.S. are of the view that the visit “be scheduled after each side has had the time to evaluate the latest developments and their implications.”

CNBC has reached out to India’s Ministry of Commerce and Industry for a comment.

India’s chief negotiator, Darpan Jain, and his team were scheduled to start the three day-meeting in the U.S. later this week.

India is currently facing a 25% reciprocal tariff, which was due to be cut to 18% after the two sides agreed to an interim deal earlier this month, with room for alterations.

“In the event of any changes to the agreed-upon tariffs of either country, the United States and India agree that the other country may modify its commitments,” read the joint statement issued on Feb. 6, by the U.S. and India.

At this stage, it appears that India, like other countries, will be facing a 15% tariff in addition to the most-favored-nation status rates (usually around 2-3%), said Ajay Srivastava, founder of the Global Trade Research Initiative and a former Indian trade negotiator.