U.S. Treasury Secretary Scott Bessent signaled on Monday that India could be among the very first nations to clinch a bilateral trade agreement with the United States—just in time to dodge the heftier tariffs looming under President Trump’s recent policies. Speaking on CNBC’s Squawk Box, Bessent described brisk, constructive discussions not only with India but also with other key Asian partners like South Korea and Japan.
“Negotiations with our Asian trading partners are going very well,” Bessent told hosts. “Vice President Vance was in India last week and reported substantial progress. Talks with Korea and Japan have also moved forward in significant ways.”
A Pause in Heavier Duties, but a 10% Baseline Persists
Last month, President Trump announced he would maintain a 10% baseline tariff on a broad swath of imports, while suspending for 90 days more aggressive, targeted duties on individual countries. That moratorium—set to expire on July 9—applies to roughly 75 nations that have approached the U.S. for new trade talks. India stands out among them.
“Many countries have come forward with solid proposals, and we’re evaluating each one,” Bessent explained. “I’d put money on India being one of the first trade deals we sign. So watch this space.”
If that prediction holds, it would mark a swift turnaround for New Delhi and Washington, which just weeks ago bristled at the threat of rising, “very high, unfair tariffs.”
India and the U.S.: Mapping Out a Bilateral Trade Agreement
Over the past few months, Indian and American officials have hammered out the terms of reference for a proposed India–U.S. Bilateral Trade Agreement (BTA). During Vice President J.D. Vance’s recent trip to New Delhi, both sides praised “significant progress” toward a pact designed to lift barriers on goods, services, and investment—while also bolstering cooperation in areas like energy, defense, and strategic technologies.
According to a joint statement issued after Vance’s visit, the agreement will focus on creating “mutually beneficial outcomes for the people of both countries,” ensuring that farmers, manufacturers, and consumers in India and the U.S. stand to gain.
Why India Matters in the U.S. Tariff Equation
Bessent emphasized that India’s willingness to engage in open, give-and-take negotiations makes it an attractive first candidate for a deal—especially compared to some of America’s larger trading partners.
“India presents a real opportunity,” he said. “They’re ready to talk through tough issues—market access, intellectual property, digital commerce—without resorting to tit-for-tat levies.”
Still, the specter of tariffs remains for every country at the negotiating table. Beyond the 10% across-the-board rate, the U.S. continues to impose 25% duties on steel, aluminum, and certain auto parts. Countries that don’t reach a new agreement by July 9 risk seeing those higher, retaliatory tariffs slip back into force.
China’s Role: A Call to De-Escalate
When pressed about China’s place in the tariff saga, Bessent made clear that Beijing holds the key to reducing tensions. “They export about five times as much to us as we do to them,” he noted. “These 120% to 145% tariffs simply aren’t sustainable. It’s up to China to take the next step toward de-escalation.”
What Comes Next?
As the July deadline approaches, several major economies are racing to finalize deal outlines with the U.S. In addition to India, Washington is deep in talks with at least 15 to 18 important trading partners. If India does emerge as the first signatory, it will underscore New Delhi’s strategic pivot toward deeper engagement with the world’s largest economy.
For American businesses grappling with rising import costs, a swift U.S.–India trade pact could bring welcome relief—easing tariff pressures on everything from pharmaceuticals and software services to agricultural commodities and textiles. And for Indian exporters, improved access to the U.S. market promises a surge in demand for everything from IT services to automotive parts.
Ultimately, Bessent’s upbeat assessment points to a broader shift in U.S. trade policy: moving away from unilateral tariff threats and toward negotiated solutions that balance national interests with global growth. If the India–U.S. agreement crosses the finish line soon, it may well set the tone for the next wave of international trade deals—and redefine how countries navigate the tariffs terrain under the current administration.
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