India on Verge of Pioneering US Trade Deal to Bypass Tariffs

US Treasury Secretary Scott Bessent is optimistic about finalizing a new trade agreement with India to avoid President Trump's reciprocal tariffs. The 26% tariff on Indian exports is temporarily suspended, and negotiations are progressing well due to India's fewer trade barriers. This could pave the way for strengthened bilateral ties.

US Treasury Secretary Scott Bessent anticipates that India will become the first nation to finalize a bilateral trade deal with the United States, circumventing President Donald Trump's proposed reciprocal tariffs.

Currently, a significant 26% 'reciprocal' tariff on Indian goods is on a 90-day hiatus, set to end on July 8. Meanwhile, a 10% tariff remains under the prevailing policy, applicable to multiple nations including India.

During a media briefing, as reported by The New York Post, Bessent expressed that negotiations with India are nearing completion due to the country's comparatively low tariffs and minimal non-tariff barriers, citing the absence of currency manipulation and substantial government subsidies.

Concurrently, President Trump has called for other nations to dismantle trade barriers and address the US trade deficits. US Vice President JD Vance, speaking in Jaipur, appealed for India to remove non-tariff barriers, open its markets further, and increase imports of American products.

The impact of these developments is backed by Census Bureau data, highlighting that India accounted for nearly 3% of US imports as of February, alongside a USD 45.7 billion trade deficit, according to the US Trade Representative Office.

(With inputs from agencies.)