By Samuel Eugene
India is likely to be the first country to finalise a bilateral trade agreement with the United States before a looming tariff deadline, according to US Treasury Secretary Scott Bessent.
Speaking at a media roundtable in Washington, Bessent expressed optimism about the ongoing trade talks, stating that discussions with India were “very close” to reaching a successful conclusion.
The urgency stems from a 90-day pause on a proposed 26 per cent “reciprocal” tariff on Indian exports to the US, which is due to expire on 8 July.
If no agreement is reached by then, the US could impose the higher tariffs on a wide range of Indian goods. At present, India is already subject to a 10 per cent tariff under existing trade policies.
Bessent explained that India has fewer trade barriers compared to other nations and does not engage in currency manipulation or offer significant government subsidies. These factors, he noted, make India a relatively easier partner for trade negotiations.
“India has fewer non-tariff trade barriers and very little in the way of government subsidies. That makes it much simpler to reach a deal with them,” Bessent said during the discussion held alongside the annual meetings of the World Bank and the International Monetary Fund.
The US administration, under President Donald Trump, has been pushing for other countries to reduce tariffs and trade barriers on American goods. The goal is to eliminate trade deficits and promote fairer access to foreign markets for US businesses.
India’s trade relationship with the US has been under scrutiny in recent years, particularly due to the trade imbalance. According to the US Office of the Trade Representative, the United States had a trade deficit of $45.7 billion with India in 2024.
As of February, Indian goods accounted for nearly 3 per cent of total US imports, as per data cited from the US Census Bureau.
Earlier this week, US Vice President JD Vance visited Jaipur, where he called on India to reduce non-tariff barriers and open up its markets further to American products.
He also encouraged India to increase its imports of US energy and defence equipment, as part of a broader effort to deepen strategic and economic ties.
Vance emphasised that strengthening the relationship between the two countries is vital for ensuring a stable and prosperous 21st century. His remarks reflect a growing consensus in Washington that India will play a key role in shaping global trade and security in the years ahead.
As the July 8 deadline approaches, both sides appear eager to finalise the agreement, which could set a precedent for future US trade negotiations in the Indo-Pacific region.
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