US election results prompt faster trade talks and tariff worries for India

UPDATE - follow-up to U.S. midterm elections impact on India: faster trade deal talks and higher tariffs likely: U.S. midterm election results show a loss of congressional control for the administration, prompting predictions of faster trade talks with India alongside potential tariff pressure.

Expert Views

Ajay Srivastava of the Global Trade Research Initiative says President Donald Trump will use executive powers to push for a quick trade deal and prove American clout. Deep Pal of the Koan Advisory Group notes that Indian negotiators may view the new political reality as an opportunity to break deadlocks and secure a better deal.

Tariff Pressures

The U.S. Supreme Court struck down a reciprocal tariff policy in February, but other tools remain available. The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 allows tariffs of up to 100% on countries importing Russian oil and gas. Furthermore, the U.S. is investigating India under Section 301 of the Trade Act of 1974 for strategic excess manufacturing capacity, following a previous 10% tariff linked to forced labour checks and existing 50% steel and aluminium tariffs under Section 232 of the Trade Expansion Act of 1962.

Context

Trade negotiations between large economies often involve complex political pressures and domestic legislative factors. Executive powers allow leaders to act independently of lawmakers in specific trade and tariff matters.