India could become the first country to strike a bilateral trade deal with the United States under President Donald Trump’s push for “reciprocal” tariffs, US treasury secretary Scott Bessent said.
Speaking to a group of reporters in Washington on Wednesday, Bessent suggested that negotiations with India were “very close” to a breakthrough, reaching a successful conclusion as the world’s most populous nation doesn’t have “so many high tariffs.
Indian exports are set to face a 26 per cent reciprocal tariff, which are scheduled to come into effect on 8 July. At present, they are subjected to a 10 per cent tariff under the existing trade policy introduced during the Trump administration.
“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,” Bessant said, quoted by the New York Post.
The comments were made on the sidelines of the World Bank and International Monetary Fund’s annual meetings in Washington DC, where trade tensions and global economic shifts have been key topics.
President Trump has made it clear that he wants foreign governments to slash their tariff and non-tariff restrictions on American goods and help reduce the US trade deficit. India, the world’s most populous country, could be the first to secure a trade pact that meets those terms.
The push for a deal comes as US Vice President JD Vance visited Jaipur on Tuesday, urging India to remove remaining non-tariff barriers, open its markets further, and step up imports of American energy and defence equipment. He called for stronger economic ties as part of a vision for a “prosperous and peaceful” 21st century between the two democracies.
Trade figures reflect the growing importance of the relationship. The New York Post cited US census bureau data showing that India made up nearly 3 per cent of US imports as of February. In 2024, the US trade deficit with India stood at $45.7 billion, according to the office of the US trade representative.
