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US Treasury Secretary Scott Bessent expressed optimism that Washington and New Delhi will resolve trade tensions.
Prime Minister Narendra Modi with US President Donald Trump. (Image: PTI/File)
US Treasury Secretary Scott Bessent voiced confidence that Washington and New Delhi will “come together” despite a sharp escalation in trade tensions as US President Donald Trump’s 50% tariff on Indian goods came into force.
“I do think India’s the world’s largest democracy, the US is the world’s largest economy. I think at the end of the day we will come together,” Scott Bessent told Fox Business, even as he acknowledged the negotiations have become increasingly “complicated”.
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The latest duties, imposed weeks after an additional 25% penalty on India over purchases of Russian oil and defence equipment, mark the toughest unilateral action by Washington against New Delhi since the start of the trade dispute.
‘Complicated’ Negotiations
Scott Bessent revealed that the US had expected a breakthrough by early summer but that India had taken a slower approach to finalising an agreement.
“The Indians came in early after Liberation Day to start negotiating on tariffs and we still don’t have a deal,” he said, describing parts of New Delhi’s stance as “performative”.
India’s continued imports of discounted Russian crude, he added, have further complicated the talks.
Trade Imbalance In Focus
Highlighting structural concerns, Scott Bessent said the US held an advantage as the “deficit country” in the relationship.
“When there is a schism in trade relations, the deficit country’s at an advantage. It’s the surplus country that should worry. So the Indians are selling to us. They have very high tariffs and we have a very large deficit with them,” he noted.
He also pushed back against speculation that the rupee could one day challenge the dollar’s dominance.
“A lot of things I worry about. The rupee becoming the reserve currency isn’t one of them,” he remarked, pointing to the Indian currency’s weakness against the dollar as evidence of economic fragility.
Despite the tariff confrontation, both governments have stressed that their broader ties remain intact. Defence cooperation, technology partnerships and strategic dialogue continue to expand, even as disagreements over trade persist.
New Delhi has also underlined its red lines: agricultural and dairy products remain protected sectors that cannot be compromised in any negotiation.
- Location :
Washington D.C., United States of America (USA)
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