Indo-US trade deal at risk as opposition calls for pause after SCOTUS ruling

SelfRugger · 2026-02-22T02:20:45+00:00

India's trade relations with the U.S. are jeopardized by the Supreme Court's ruling against Trump's tariffs, prompting opposition calls for a trade pause. Amid this uncertainty, Modi shifts focus to making India a hub for affordable AI as a strategic response.

SelfRugger

2026-02-22 02:20:45

Abstract generation in progress

Indo-US trade deal at risk as opposition calls for pause after SCOTUS ruling

Investing.com

Sat, February 21, 2026 at 7:43 PM GMT+9 2 min read

Investing.com – India’s trade landscape has been thrown into disarray following the U.S. Supreme Court’s decision to invalidate President Trump’s recent tariff regime. The Indian opposition, led by the Congress party’s Jairam Ramesh, is now demanding that Prime Minister Narendra Modi’s administration put the current Indo-US trade framework on hold. The opposition argues that the legal shift in Washington necessitates a total renegotiation.

Under the previous interim agreement, India had secured a reduction in levies to 18% (down from 25%) and the removal of punitive duties. However, with the Supreme Court striking down those specific levies and Trump pivoting to a universal 10% global tariff, the “reciprocal” advantage India fought for has largely evaporated. Ajay Sahai of the Federation of Indian Export Organisations notes that while the “level playing field” has returned, the specialized deal India signed is now functionally obsolete.

India eyes “affordable AI” hub status amid trade friction

As trade tensions simmer, Prime Minister Modi is doubling down on technology as the nation’s primary growth engine. At a high-profile summit in New Delhi this month, Modi asserted India’s global ambitions, positioning the country as the world’s primary hub for “affordable AI.” The Prime Minister is leveraging India’s vast pool of software talent and massive data sets to argue that the nation can provide AI solutions at a fraction of the cost of Western counterparts.

The push for AI dominance comes after a challenging year for the administration but signals a strategic shift: if traditional trade in goods is hampered by shifting U.S. tariffs, India intends to lead in the digital economy. By focusing on democratizing AI and building “AI for all,” the government hopes to attract global investment and solidify India’s role as a tech superpower, even as its traditional trade deals face a mandatory “restart.”

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