Washington: US Treasury Secretary Scott Bessent has said that India is likely to be among the first countries to finalise a bilateral trade agreement with the US to avert reciprocal tariffs by President Donald Trump.
Bessent made these remarks on Monday during an interview with CNBC’s Squawk Box’ to discuss the latest developments on President Trump’s trade negotiations with other countries.
“Negotiations with our Asian trading partners are going very well. Vice President (JD) Vance was in India last week and talked about substantial progress. I have mentioned that the negotiations with the Republic of Korea have gone very well. And I think we’ve had some very substantial negotiations with our Japanese allies,” Bessent said.
The top US official highlighted India’s relatively open trade practices and fewer non-tariff barriers as key factors accelerating the discussions.
The announcement comes against the backdrop of escalating global trade tensions, with the US imposing broad-based tariffs earlier this month.
US President Donald Trump’s administration has maintained a 10% across-the-board tariff while pausing more aggressive levies for 90 days to allow room for negotiations.
India’s proactive engagement appears to have positioned it favourably in these talks.
Meanwhile, Bessent placed the onus on China to de-escalate trade tensions, citing the unsustainable nature of their retaliatory tariffs.
“I believe that it’s up to China to de-escalate, because they sell five times more to us than we sell to them,” the CNBC report quoted Bessent as saying.
The treasury secretary (finance minister) also commented on the European Union’s response to the strengthening euro, predicting that the European Central Bank (ECB) might cut rates to counteract the currency’s rise against the US dollar.
During a recent media roundtable at the World Bank and IMF annual meetings in Washington, Bessent shared that trade negotiations with India are nearing completion, crediting the progress to India’s relatively open trade policies.
At present, India faces a 10% tariff under the existing US policy, alongside a proposed 26% “reciprocal” tariff on its exports. This proposed tariff has been temporarily paused for 90 days, with the pause set to expire on July 8. The higher tariff is part of a broader strategy by Trump aimed at reducing the US trade deficit and encouraging trading partners to lower trade barriers.
During his visit to India from April 21 to 23, US Vice President JD Vance called on New Delhi to expand its markets and reduce non-tariff barriers. He also encouraged India to boost imports of American energy and military equipment, presenting these steps as a pathway to strengthening the US-India partnership.
