Is New Delhi Close To Reaching a Trade Deal With Washington? Here's What US Treasury Secretary Scott Bessent Says

Washington: As the July 9 tariff pause deadline looms, US Treasury Secretary Scott Bessent has expressed optimism about reaching trade deals with several countries, including India. According to Bessent, the US is close to finalising agreements on multiple trade deals, with several major announcements expected in the coming days. The US official's statement has led to hope for a major trade deal between India and the US, with both nations engaged in negotiations prioritising their individual national interests.

Notably, the 90-day suspension of reciprocal tariffs on Indian goods is set to expire on July 9, and if no deal is reached, India will face a 26% tariff rate on top of the baseline tariffs for any imports from the Asian nation into the United States. The US tariff will have big implications for Indian exporters, who are currently paying a 10% baseline tariff. The US has already imposed an additional 26% reciprocal tariff on Indian goods, which was later suspended for 90 days.

US Treasury Secretary's Comments

US Treasury Secretary Scott Bessant's comments suggested that the US is serious about reaching trade deals with several countries, including India. "President Trump's going to be sending letters to some of our trading partners saying that, if you don't move things along, then on August 1, you will boomerang back to your April 2 tariff level. So I think we're going to see a lot of deals very quickly," Bessent said. The US Treasury Secretary refused to name countries that were close to a trade agreement, stating that he doesn't want to let them “off the hook”.

The India-US trade deal negotiations have intensified in recent weeks, with both sides working towards a mutually beneficial agreement. Commerce and Industry Minister Piyush Goyal met US Commerce Secretary Howard Lutnick in Washington to discuss the proposed bilateral trade agreement. The meeting was to finalise an interim trade pact before the July 9 deadline.

India's Stance On Trade Deals

Union Minister Piyush Goyal has asserted that India will not enter into any trade deal under pressure. "India discusses on its own terms and we never make a trade deal based on a timeline; when the deal is good, fully matured, and in the national interest, then we accept it," Goyal said. He outlined that the India-US trade deal should prioritise India's national interest and be a win-win agreement for both countries. 

"It should be a win-win agreement, and only when India's interests are safeguarded, national interest will always be supreme and keeping that in mind if a good deal is formed, India is always ready to engage with developed countries," the Union Minister added.

What's at Stake for India?

India is seeking full exemption from the additional 26% tariff and duty concessions for labour-intensive sectors like textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, and bananas. The US, on the other hand, wants duty concessions in sectors like certain industrial goods, automobiles, wines, petrochemical products, dairy, and agriculture items.