India has postponed a key round of trade talks with the United States in the wake of a U.S. Supreme Court ruling against reciprocal tariffs, even as Southeast Asian governments signal they will broadly maintain their existing trade arrangements with Washington.
New Delhi had been expected to dispatch a negotiating team to the United States this week to finalize a long‑discussed trade package. Instead, the visit has been delayed while officials reassess the implications of the court’s decision and the Trump administration’s subsequent policy signals, Bloomberg reported on Saturday, citing Indian trade officials.
India’s Ministry of Commerce said in a statement that it was “studying the meaning” of the ruling and reviewing follow‑up measures announced by President Donald Trump’s administration. No new date for the delegation’s trip has been announced.
Earlier this month, Washington and New Delhi reached a tentative framework that would have marked a significant reset in their commercial ties. The outline included cutting U.S. tariffs on Indian goods from 50 percent to 18 percent, a halt to India’s imports of Russian crude oil, partial opening of India’s protected agricultural market and a commitment by New Delhi to purchase roughly $500 billion worth of American goods.
The agreement has drawn fierce domestic scrutiny. The main opposition Indian National Congress party has urged Prime Minister Narendra Modi’s government to suspend the deal and seek a renegotiation in light of the Supreme Court ruling, arguing that India should not lock in concessions while the legal and political environment in Washington is in flux.
While India taps the brakes, major Southeast Asian economies — many of which have just concluded or are in the final stages of trade talks with the United States — are opting for continuity.
Indonesia, which sealed a trade agreement with Washington on Feb. 19, just one day before the court’s decision, has moved quickly to defend the terms it secured. The deal set reciprocal tariff rates of 19 percent, eliminated duties on some Indonesian exports such as palm oil and granted zero tariffs on most U.S. goods entering Indonesia.
“We are preparing for all possibilities,” President Prabowo Subianto said in a video statement on Friday, adding that Jakarta “respects U.S. domestic politics and will monitor the situation.”
Airlangga Hartarto, Indonesia’s coordinating minister for economic affairs and chief trade negotiator, said he had formally asked Washington to maintain the agreed‑upon zero tariffs on Indonesian palm oil. He stressed that the bilateral agreement “is still valid” despite the recent developments in the United States and argued that countries with trade pacts in place would be treated differently from those without such arrangements.
Indonesia’s Coordinating Ministry for Economic Affairs said it was closely watching both the Supreme Court ruling and President Trump’s push for new global tariffs, but did not signal any intention to reopen the deal.
Thailand, which reached a provisional trade framework with the United States last October that also set reciprocal tariffs at 19 percent and granted zero tariffs on U.S. manufactured and agricultural products, has likewise chosen to stay the course.
Thai Commerce Minister Supachai Sutumpun said Bangkok would continue negotiations under the existing framework. The policy, he said, was designed to “maintain the stability of trade and investment relations, mitigate risks from unstable trade measures, and manage potential impacts on Thai businesses.”
Cambodia is taking a similar line. Deputy Prime Minister Sun Chanthol said Phnom Penh was proceeding with ratification of a mutual trade agreement concluded with Washington last October. The pact covers tariff schedules as well as a range of other issues, he noted, adding, “We respect our commitments.”
In the Philippines, which agreed to reciprocal tariff rates of 19 percent with the United States last July, senior officials underscored the strategic importance of the relationship. Finance Secretary Frederick Go described the United States as “an important trade and investment partner” and said Manila intended to continue its cooperation with Washington under the existing terms.
Taken together, the responses highlight a divergence in how Asian partners are reacting to the legal and political turbulence surrounding U.S. trade policy. India, with a larger domestic market and a more contentious internal debate over foreign economic influence, is opting for caution and delay. Smaller Southeast Asian economies, many of which are more tightly integrated into U.S. supply chains and investment flows, appear more inclined to bank the gains of recently negotiated access and ride out the uncertainty.
For Washington, the mixed reactions underscore both the leverage and the limits of its trade strategy. The Supreme Court’s move against reciprocal tariffs — a key pillar of President Trump’s approach — has introduced new uncertainty into negotiations just as the administration is seeking to reshape global trade patterns and reduce reliance on strategic rivals.
Whether India ultimately returns to the table on the original terms, or pushes for a significantly revised deal, may hinge on how the Trump administration recalibrates its tariff plans in response to the court’s ruling — and on how far Asian partners are willing to go to hedge against an increasingly unpredictable U.S. trade regime.
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