The United States and India are on the verge of finalising a major bilateral trade agreement, treasury secretary Scott Bessent said on Tuesday.
Signalling what could be the first such deal under US President Donald Trump, he said that the two countries are “very close” to a breakthrough.
Speaking alongside White House press secretary Karoline Leavitt, Bessent praised New Delhi’s approach, calling it “much easier” to negotiate with India than other nations due to the country’s relatively low non-tariff trade barriers.
Scott had also earlier signaled this finalisation, attributing it to India’s “fewer non-tariff trade barriers, obviously, no currency manipulation, very, very little government subsidies, so that reaching a deal with the Indians is much easier,” Bessent said during a press briefing held on the sidelines of the World Bank and IMF’s annual meetings in Washington DC.
The deal, once formalised, would mark a significant milestone in President Trump’s efforts to reset global trade relations under the banner of fairness and reciprocity.
Currently, Indian exports to the US face a 10 per cent tariff. Under the proposed policy shift, a 26 per cent reciprocal tariff is scheduled to come into effect on 8 July unless a new deal is struck.
The latest remarks hint that India could be the first to secure a bilateral pact with Washington that aligns with Trump’s trade vision, making it a key player in reshaping US economic partnerships.
The talks come amid broader American efforts to deepen strategic and economic ties with India. Earlier during his visit to India US vice president JD Vance, had urged to eliminate remaining non-tariff barriers and boost imports of American energy and defence goods.
According to US Census Bureau data, India accounted for nearly 3 per cent of all American imports as of February. The US trade deficit with India stood at $45.7 billion in 2024, highlighting the scale and importance of the bilateral economic relationship.
Bessent also confirmed that discussions are ongoing with Japan and South Korea. He noted that South Korea’s upcoming presidential election in June is unlikely to hinder progress on a separate deal with Seoul.
