Washington DC [US], August 27 (ANI): Following the imposition of 50 per cent tariffs on Indian goods earlier on Wednesday, US Treasury Secretary Scott Bessent expressed confidence that trade tensions between India and the US will eventually be resolved. Speaking to Fox Business Network, Bessent said, “At the end of the day, we (India and the US) will come together.”
Acknowledging the complexities in the bilateral relationship, Bessent highlighted the strong personal rapport between Prime Minister Narendra Modi and US President Donald Trump as a key factor in facilitating a resolution. “This is a very complicated relationship. President Trump and Prime Minister Modi have very good relationships at that level. And it’s not just over the Russian oil,” he added.
The 50 per cent tariffs came into effect following a draft notice from the US Customs and Border Protection (CBP), implementing Executive Order 14329 of August 6, 2025. The additional duties, which include a 25 per cent increase on certain Indian imports, were imposed in response to India’s purchase of Russian oil.
Bessent noted that India’s negotiating stance has been “performative,” emphasizing that the US, as the deficit country in trade, holds an advantage. “When there is a schism in trade relations, the deficit country is 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 said.
He also recalled that India engaged early in trade discussions following Trump’s April 2 Liberation Day announcement on tariff impositions, with expectations of a deal being reached by May or June. “The Indians came in very early, after Liberation Day, to start negotiating on tariffs. And we still don’t have a deal. I thought that we would have a deal in May or June. I thought India could be one of the earlier deals,” Bessent added, noting that India’s Russian crude purchases added further layers to the negotiations.
Despite the challenges, Bessent remained optimistic, underscoring the eventual convergence of interests between the two nations. (ANI)
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