According to US Treasury Secretary Scott Bessent, India is going to be the first country to sign a bilateral trade pact with the United States under the trade policy set by the Trump government. The announcement is made, as both countries try to avoid bringing back the 26% "reciprocal" tariff on Indian import goods, now temporarily suspended for 90 days and set to expire on July 8.

On Wednesday, during the World Bank and International Monetary Fund Annual Meetings in Washington, DC, Bessent said, "India also has fewer non-tariff trade barriers, obviously, no currency manipulation, very, very little government subsidies, so that reaching a deal with the Indians is much easier."

According to the New York Post, Bessent told a roundtable of about a dozen reporters that trade talks with India are "very close" to reaching a successful conclusion because the world's most populous nation doesn't have "so many high tariffs."

Currently, Indian goods face a 10 percent tariff under US policy, which could rise to 26 percent if an agreement is not reached before the July 8 deadline. The Trump administration has been pushing for what they term "reciprocal" tariffs demanding trade partners to lessen their duties and other obstacles on American exports, with the aim of having an end to the US trade deficit.

Earlier this week, US Vice President JD Vance, speaking from Jaipur, underlined the necessity of India's opening up more to US products. He urged  New Delhi to drop non-tariff trade barriers, provide market access and buy American energy and defence equipment. This framework is an integral part of a bigger strategic shift to forge deep bilateral ties for a "prosperous and peaceful" 21st century.

According to the New York Post, US Census Bureau data, as of February 2025, India accounted for 3 percent of all US imports. The Office of the US Trade Representative indicated that the trade deficit with India for 2024 was 45.7 billion dollars.