India may postpone its planned trade agreement with the United States for several months, according to four unnamed Indian sources cited by Reuters. The delay follows a new U.S. investigation into alleged excess industrial production capacity among trade partners, which has heightened tensions between the two countries. India had expected to sign an interim deal in March before finalizing a broader agreement, but the timeline has now been pushed back.

Officials from both sides said they remain in contact to pursue a mutually beneficial deal, though no new signing date has been set. Talks reportedly slowed after the U.S. Supreme Court overturned tariffs imposed by President Donald Trump in late February, and Washington’s focus shifted to conflict with Iran. India has reduced but not halted imports of Russian oil, while U.S. officials have urged New Delhi to increase imports to ease global energy shortages.

Analysts said India’s cautious approach is reasonable given ongoing tariff uncertainty and the Section 301 investigation under the 1974 Trade Act. India may present its case to the U.S. Trade Representative or take the matter to the World Trade Organization if needed.