US Treasury Secretary Scott Bessent
| Photo Credit:
REUTERS
India could become the first country to finalise a bilateral trade agreement (BTA) with the US regarding Trump tariffs US Treasury Secretary Scott Bessent said.
He said, negotiations with India could be nearing completion, because of the latter’s relatively open trade practices. And, also because of the fact that India “does not impose so many high tariffs”, making it a probable frontrunner for an expedited trade pact.
As per reports in the US media, Treasury Secretary Bessent said he expected India to strike the first bilateral trade deal, while potential agreement with China has been “set aside” for now.
Bessent told media that trade talks with India were “very close” to reaching a successful conclusion, as the sub-continent does not have “so many high tariffs.”
“India also has fewer non-tariff trade barriers, obviously, no currency manipulation, very minimal government subsidies, so reaching a deal with the Indians is much easier,” Bessent said. He was speaking at a Washington DC event on the sidelines of the annual World Bank and International Monetary Fund meetings.
Currently, the 26 per cent reciprocal tariff on India imposed by the US is under a 90-day suspension. This pause is set to expire on July 8. However, India still faces a 10 per cent tariff, similar to other nations, under the US trade policy.
The higher tariff is part of a broader strategy by President Trump to exert pressure on trading partners to lower trade barriers and narrow the US trade deficit.
Previously, US Vice-President JD Vance, during his visit to India, had urged the country to drop non-tariff barriers, provide access to markets and buy more American energy and defence hardware. “India, we believe, can go a long way to enhance energy ties between our nations. And one suggestion I have is maybe consider dropping some of the nontariff barriers for American access to the Indian market,” he had said during an event in Rajasthan.
Both, Bessent and Vance’s comments come in the backdrop of New Delhi and Washington taking up discussions to finalise terms of reference for their bilateral trade agreement, with negotiations expected to gain momentum in the coming weeks.
businessline had previously reported that top officials from India and the US will discuss the agenda for an “early tranche” of the India-US bilateral trade agreement (BTA) that can be delivered within the 90-day pause period for reciprocal tariffs in Washington DC next week. The Indian team, on a three-day meeting, will be led by Commerce Additional Secretary Rajesh Agarwal.
Published on April 24, 2025
