India likely to secure first trade deal amid United States tariff push: United States Secretary of the Treasury Mr. Scott Bessent

India is on track to become the first country to finalise a bilateral trade agreement with the United States (US) aimed at avoiding proposed reciprocal tariffs under US President Mr. Donald Trump’s trade strategy, United States Secretary of the Treasury Mr. Scott Bessent stated. At a media roundtable during the World Bank and International Monetary Fund (IMF) annual meetings in Washington, Mr. Scott Bessent credited India’s open trade practices, minimal non-tariff barriers, absence of currency manipulation, and limited government subsidies as key factors contributing to the accelerated negotiations. He emphasised that a deal with India has been easier to achieve than other countries.

Currently, Indian exports to the United States face a 10% tariff, and a proposed 26% reciprocal tariff has been temporarily suspended for 90 days, with the pause set to expire on July 8, 2025. The higher duty forms part of Mr. Donald Trump’s broader policy to push trade partners towards reducing barriers and narrowing the US trade deficit. In a related development, United States Vice President Mr. JD Vance, during a visit to Jaipur, Rajasthan, called on India to further open its markets, reduce non-tariff barriers, and increase imports of US energy and defence equipment. These steps, he noted, would not only support bilateral trade but also reinforce the foundation of a stronger US-India strategic partnership.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.