U.S. Treasury Secretary Scott Bessent expressed optimism about resolving trade disputes with India, despite the implementation of a new 50% tariff on Indian imports.
WASHINGTON, D.C. — On August 27, U.S. Treasury Secretary Scott Bessent conveyed his confidence that the United States and India will ultimately find a resolution to their ongoing trade disputes, even as a significant new 50% tariff on Indian imports came into effect on the same day.
In an interview with Fox Business Network, Bessent acknowledged the “very complicated” nature of the relationship between the two nations. He emphasized the strong personal rapport between President Donald Trump and Indian Prime Minister Narendra Modi as a crucial factor in navigating these challenges. Bessent pointed out that while India is recognized as the world’s largest democracy, the United States holds the title of the world’s largest economy, making their negotiations particularly intricate.
The recent tariff increase, enacted under President Trump’s Executive Order 14329, is largely perceived as a punitive response to India’s ongoing purchase of Russian oil. Bessent also noted that India has adopted a protracted and “performative” approach to negotiations. He mentioned that India had initially engaged in discussions following Trump’s “Liberation Day” announcement on April 2, but a deal that he anticipated would be finalized by May or June has yet to materialize.
Bessent underscored the United States’ advantageous position as the deficit country in this trade relationship. “I’ve said this all along during the tariff negotiations: the U.S. is the deficit country. When there is a schism in trade relations, the deficit country is at an advantage. It’s the surplus country that should worry,” he stated, referring to the significant trade deficit the U.S. has with India.
He concluded with a hopeful outlook, saying, “At the end of the day, we will come together.” This sentiment reflects a belief that despite current tensions, a resolution is possible.
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