The highly anticipated comprehensive Bilateral Trade Agreement (BTA) and the subsequent interim framework between India and the United States have hit critical delays due to deep-seated agricultural disagreements and complex legal shifts in Washington. Initial negotiations lost momentum over India’s protective stance on its domestic dairy and agricultural sectors, as well as New Delhi’s ongoing oil imports from Russia, which prompted temporary punitive U.S. tariff hikes. Although a framework for an interim deal was established to grant India a competitive 18% tariff rate, the U.S. Supreme Court subsequently struck down the reciprocal tariff system under the International Emergency Economic Powers Act (IEEPA), dismantling the foundational basis of the talks. Additional friction has emerged from ongoing U.S. Section 301 investigations into excess manufacturing capacity and alleged forced-labor-related imports, with Washington proposing a 12.5% tariff on several nations. Consequently, there is currently very little political appetite in New Delhi to finalize the trade deal, as policymakers fear a disproportionate tariff-reduction burden could severely damage India’s politically sensitive farm sector and negatively impact its narrowing trade balance of payments.