US Treasury Secretary Scott Bessent informed on Wednesday that trade talks with India are very close to reaching a successful conclusion, the New York Post reported. Bassent also asserted that it was possible since India 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 told reporters at the Washington DC event on the sidelines of the annual World Bank and International Monetary Fund meetings.
Bessent also said that he expects India to sign the first bilateral trade deal to avoid President Donald Trump's reciprocal tariffs. In-person negotiations between India and the US began on Wednesday.
A 26% 'reciprocal' tariff on Indian exports to the US is currently on a 90-day pause, set to expire on July 8. India is currently subjected to a 10% baseline tariff like every other US trade partner, except for China.
Earlier on Tuesday, US Vice President JD Vance also urged India to drop non-tariff barriers and give greater access to its markets. He also said that India should buy more American energy and military hardware, laying out a broader roadmap of deeper ties between the two nations for a "prosperous and peaceful" 21st century.
The report also quoted data from the Census Bureau to say that India accounted for nearly 3% of imported goods to the US as of February. The US had a $45.7bn trade deficit with India in 2024, according to the Office of the US Trade Representative (USTR).
USTR official Jamieson Greer on Tuesday stated that between the US and India "There is a serious lack of reciprocity in the trade relationship." However, he welcomed India's constructive engagement so far and said that it will create new opportunities for workers, farmers and entrepreneurs in both countries.
In a fact-sheet, the USTR office also highlighted that India’s average applied tariff is 17%, among the highest of the world’s largest economies, while the US average applied tariff is just 3.3%.
[With inputs from PTI]
