- Thursday, April 24, 2025
Scott Bessent told reporters that trade talks with India are “very close” to reaching a successful conclusion because it doesn’t have “so many high tariffs”
By: shajil kumar
US TREASURY SECRETARY Scott Bessent has said he expects India to strike the first bilateral trade deal to avoid president Donald Trump’s reciprocal tariffs.
A 26 per cent ‘reciprocal’ tariff on Indian exports to the US is currently on a 90-day pause, set to expire on July 8.
However, like other countries, India is currently subject to a 10 per cent tariff under the existing policy.
According to the New York Post, Bessent told a roundtable of about a dozen reporters on Wednesday that trade talks with India are “very close” to reaching a successful conclusion because the world’s most populous nation doesn’t have “so many high tariffs.”
“India also has 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 at the DC event on the sidelines of the annual World Bank and International Monetary Fund meetings.
President Trump has demanded that other countries break down their tariffs and non-tariff barriers to American goods, as well as eliminate US trade deficits, the New York Post said.
Finance minister Nirmala Sitharaman on Monday (21) said that India hopes to “positively conclude” the first part of the trade pact by this autumn.
“The long and short of engaging with the U.S. is not just for this reciprocal tariff-related matter, but in the interest of … our largest trading partner with whom we need to have an agreement,” Sitharaman said in an address to the Indian diaspora in San Francisco.
She later cut short her US visit due to the terror attack at Pahalgam in Kashmir.
Earlier on Tuesday (23), US vice president JD Vance in Jaipur urged India to drop non-tariff barriers, give greater access to its markets and buy more American energy and military hardware as he laid out a broader roadmap of deeper ties between the two nations for a “prosperous and peaceful” 21st century.
Vance concluded his four-day visit to India on Thursday (24) and left for Washington.
The New York Post quoted data from Census Bureau to say that India accounted for nearly 3 per cent of imported goods to the US as of February.
The US had a $45.7 billion trade deficit with India in 2024, according to the Office of the US Trade Representative. (PTI)
