‘Weaponised’ tariffs complicating US trade deal talks, says Nirmala Sitharaman

Trade deal talks between India and the United States have reached a “plateau” and further concessions might be difficult, Reuters quoted Union Finance Minister Nirmala Sitharaman as saying on Monday.

Sitharaman blamed the increasing use of tariffs by the US for the stalled trade talks. She said that Washington was “weaponising” tariffs.

After an interim trade deal was agreed upon on February 2, US tariffs on Indian goods would have been reduced to 18% from a combined rate of 50%. The earlier rate of 50% had included a punitive levy of 25% imposed in August 2025 over India’s purchase of Russian oil.

However, negotiations on the final deal were hampered after the US Supreme Court on February 20 struck down global tariffs imposed by Trump, ruling that he had exceeded his authority.

In response, Trump imposed a temporary 10% tariff on goods imported into the US, citing his authority under the 1974 Trade Act. This has left the status of US’ trade deals with countries, including India, unclear.

On Monday, Sitharaman said that the negotiations have reached a point beyond which additional give and take would be “very, very difficult” for both sides.

“[It has] been ⁠a hard and very vigorously negotiated agreement,” she said at an event in Delhi, adding that the talks will continue.

Sitharaman said that...

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