India Could Be First to Sign Trade Deal with US Amid Tariff Pause, says US Treasury Secretary

According to the news reports, India may become the first country to conclude a bilateral trade agreement with the United States under the current US tariff policy, according to comments from US Treasury Secretary Scott Bessent. Trade negotiations between the two countries are in the advanced stages, with both sides aiming to finalise the first phase of the agreement before July.

Negotiations Underway in Washington

India’s Commerce Secretary Rajesh Agrawal is currently in the US for a three-day round of discussions with American officials. The meetings follow the finalisation of the terms of reference for the proposed Bilateral Trade Agreement (BTA). Talks began on Wednesday in Washington and are expected to cover unresolved issues that may lead to an interim understanding before formalisation.

India’s Trade Profile Cited

Speaking at an event on the sidelines of the World Bank and IMF meetings, US Treasury Secretary Scott Bessent noted that India does not impose as many high tariffs compared to other nations and has fewer non-tariff barriers. He also said India does not engage in currency manipulation and provides minimal government subsidies. These factors, he added, make negotiations simpler.

Tariff Status and Timeline

In April, the US announced a 26% reciprocal tariff on Indian exports, applicable to around 60 countries. This tariff was later put on hold for 90 days, with the suspension set to expire on July 8. India currently remains subject to a 10% tariff under the US’s existing trade framework. The bilateral deal, if concluded on time, may allow India to avoid the higher tariff.

Diplomatic Engagement

US Vice President JD Vance, during his visit to Jaipur earlier this week, called for India to remove non-tariff barriers and expand access to its markets. He also encouraged increased purchases of American energy and defence products as part of broader trade and strategic discussions.

Read more: India and US Finalise Terms of Reference to Address Trade Tariff Barriers!

Conclusion

With negotiations progressing and the tariff suspension deadline approaching, both sides are working to finalise the initial phase of a trade deal in the coming weeks.

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