US Treasury Secretary Scott Bessent said that India is likely to become the first nation to finalise a bilateral trade agreement with Washington, helping it sidestep President Donald Trump’s reciprocal tariff on Indian exports.
A 26% reciprocal tariff on Indian exports to the United States is currently under a 90-day suspension, which is scheduled to end on July 8. Meanwhile, India, along with other nations, continues to face a 10% tariff under the prevailing US trade policy.
According to the New York Post, while speaking at a media roundtable in Washington, Bessent noted that trade talks with India are “very close” to a successful outcome, citing India’s relatively low tariffs, minimal government subsidies, absence of currency manipulation and fewer non-tariff barriers.
“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.
President Trump has been pushing nations to dismantle trade restrictions and reduce deficits with India, which accounted for about 3% of US imports as of February and had a $45.7 billion trade surplus with the US in 2024, according to official data.
In other developments, US Vice President JD Vance, speaking in Jaipur, urged India to lower non-tariff barriers and expand market access for American goods, energy and military equipment, while framing it as key to building stronger US-India ties for a stable 21st century.