Daijiworld Media Network- Washington
Washington, Apr 29: US Treasury Secretary Scott Bessent has confirmed that India is likely to be one of the first countries to sign a trade deal with the United States, as President Donald Trump continues to push for a realignment of global economic relations under the threat of tariffs.
Bessent, speaking to CNBC on Monday, noted that Vice President JD Vance’s recent visit to India had resulted in “substantial progress” in trade talks, further paving the way for a potential deal. “I would guess that India would be one of the first trade deals we would sign,” he remarked, indicating that the initial agreement could be reached soon.
The push to renegotiate trade agreements was one of the central tenets of Trump's election campaign, and as he approaches his 100th day in office, securing a deal with India—currently the world’s fifth-largest economy—would be seen as a significant accomplishment.
Bessent explained why India could be one of the first to strike a deal with the US. He highlighted that India has fewer non-tariff trade barriers, no currency manipulation, and minimal government subsidies, which makes reaching an agreement with India more feasible compared to other countries.
During Vance’s visit to India last week, discussions with Prime Minister Narendra Modi focused on trade, and both sides confirmed that a roadmap had been set for future negotiations. Vance announced, “We’re especially excited to formally announce that America and India have officially finalised the terms of reference for the trade negotiations.” He emphasized that this was a vital step towards realizing the vision of both President Trump and Prime Minister Modi, with a final deal on the horizon.
India currently faces a 26 percent tariff rate under Trump’s reciprocal tariff regime, which is set to take effect in July unless a bilateral agreement is reached. As the deadline approaches, there is growing anticipation over the potential deal, with both sides eager to finalize the terms.
In addition to India, Bessent noted that negotiations with South Korea and Japan were progressing, although he acknowledged that a deal with South Korea was unlikely before their presidential elections on June 3. Negotiations with Japan, which initially showed promise, have stalled.
As for China, Bessent made it clear that the responsibility to de-escalate trade tensions lies with China. He stated, "I believe it’s up to China to de-escalate because they sell five times more to us than we sell to them, so these 125% tariffs are unsustainable." He also noted that China’s decision to exempt some US products from the higher tariffs was an indication that Beijing is seeking to ease the situation.