Potential Initial U.S. Trade Agreement Could Be with India, According to Treasury's Bessent.
US Treasury Secretary Bessent Hints at Imminent Trade Deals, Including with India
In a series of television interviews, US Treasury Secretary Scott Bessent suggested that a trade agreement with India could be among the first to be signed, as negotiations with various trading partners have yielded promising results.
"India is likely to be one of the early recipients of a bespoke trade deal," Bessent shared with CNBC, adding that talks with Japan have been substantial, and discussions with other Asian trading partners are progressing well. The Vice President was in India last week, discusses Bessent, and reported substantial progress.
Negotiations with the Republic of Korea and Japan have also shown significant headway, according to Bessent. He told reporters that the first trade agreement could be finalized as early as this week or the next.
China's recent moves to exempt certain US goods from tariffs indicate a desire to de-escalate trade tensions with the United States, Bessent noted. The US has held back from further escalation by refraining from embargoing those goods, he revealed.
While Bessent confirmed that President Donald Trump would have an active role in each trade agreement with key trading partners, reaching agreements in principle is crucial, he stated. He was noncommittal about when he would call his Chinese counterpart to resume negotiations between the world's two largest economies, suggesting cryptically, "We'll see what happens with China. It's important. I think it's unsustainable from the Chinese side. So maybe they'll call me one day."
Bessent emphasized that all aspects of the US government are in contact with China, but highlighted that it's up to China to take steps to reduce tensions since they export five times more goods to the US than vice versa.
Although Bessent did not disclose specific details of a potential US-India trade deal, recent developments suggest that the two countries are taking steps towards a mutually beneficial agreement. On April 2, 2025, the Terms of Reference for a bilateral trade agreement were established, marking a significant milestone in the negotiations[1]. The U.S. aims to increase market access, reduce tariffs and non-tariff barriers, and secure additional commitments to ensure long-term benefits[1][3]. Both countries have set a goal to more than double their bilateral trade to $500 billion by 2030, with initial progress expected in 2025[2][4]. India has made concessions such as removing a digital ad tax, reducing duties on certain goods like solar cells and luxury cars, and hinting at approval for Elon Musk's Starlink in India[2]. However, tensions persist, with the U.S. criticizing India's tariff policies, and India feeling concerned about recent U.S. tariffs[2][3].
- Secretary Bessent mentioned to CNBC that India might be among the first countries to sign a trade agreement, as negotiations with various trading partners have been fruitful.
- Bessent stated that talks with Japan have been substantial, and discussions with other Asian countries are moving forward productively.
- Negotiations with the Republic of Korea and Japan have reportedly made significant progress, according to Bessent.
- Bessent noted China's recent actions to waive tariffs on certain US goods as an indication of their desire to de-escalate trade tensions.
- The US-India trade deal discussions are progressing, as the Terms of Reference for a bilateral trade agreement were established on April 2, 2025, signifying a major leap in negotiations.
