U.S. Treasury Secretary Scott Besant stated that a historic trade agreement between India and the United States is imminent, citing India's implementation of lower tariffs and reduced trade barriers.
US-India: U.S. Treasury Secretary Scott Besant recently made a significant statement regarding trade negotiations between India and the United States during a roundtable discussion. He indicated a high likelihood of reaching a historic trade deal between the two nations. While the U.S. had imposed a 26% retaliatory tariff on Indian exports, this has been temporarily suspended for 90 days, expiring on July 8th.
Trade Deal with India is Easier: Besant
Besant affirmed that trade negotiations with India are nearing conclusion. He highlighted India's relatively low tariffs and minimal non-tariff trade barriers. Furthermore, the stability of the Indian rupee and limited government subsidies have facilitated the ease of reaching a trade agreement.
Emphasis from the U.S. Side
A key priority for the U.S. is the removal of tariffs and other trade barriers on American products by other countries. The Trump administration aimed to reduce the U.S. trade deficit. In this context, U.S. Vice President JD Vance urged India to grant greater market access and increase purchases of American energy and military hardware.
Trade Deficit with India
Despite these positive developments, a trade deficit between India and the U.S. persists. In 2024, the U.S. trade deficit with India reached $45.7 billion. Nevertheless, India is taking several steps to further strengthen trade relations with the U.S., aiming for a stable and prosperous bilateral trade relationship.
