US Treasury Secretary Scott Bessent on Wednesday expressed optimism that Washington and New Delhi would ultimately “come together,” despite the sharp escalation in trade tensions following President Donald Trump’s 50% tariff on Indian goods, which took effect this week.
“India is the world’s largest democracy, and the US is the world’s largest economy. At the end of the day, I believe we will come together,” Bessent told Fox Business. However, he admitted that negotiations have become increasingly “complicated.”
The fresh duties, which follow an additional 25% levy imposed earlier this month over India’s continued purchases of Russian crude and defence equipment, mark Washington’s toughest unilateral action against New Delhi since the onset of the trade dispute.
Negotiations Stalled
Bessent disclosed that the US had anticipated a breakthrough by early summer, but India’s energy ties with Moscow had complicated progress.
“The Indians came in early after Liberation Day to start negotiating on tariffs, and we still don’t have a deal,” he said, characterizing elements of New Delhi’s approach as “performative.”
Trade Imbalance in Spotlight
The Treasury Secretary also underscored the issue of trade asymmetry.
“When there is a schism in trade relations, the deficit country has the advantage. It’s the surplus country that should be concerned. The Indians are selling to us, they maintain very high tariffs, and we carry a very large deficit with them,” Bessent observed.
Broader Ties Remain Intact
Despite the tariff clash, both governments have emphasized that their strategic and defence partnership remains strong. Technology cooperation, joint security initiatives, and high-level dialogues continue, even as contentious trade issues persist. New Delhi has reiterated its firm stance that agricultural and dairy products remain protected sectors, and will not be subject to compromise in any negotiation.
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