India-US Trade Talks: American Treasury Secretary reportedly calls India ‘a bit recalcitrant’

US Treasury Secretary Scott Bessent said on Tuesday that India has been “a bit recalcitrant” in discussions with the United States, with several large trade pacts still waiting to be completed, including with Switzerland and India. In an interaction with Fox Business Network, Bessent expressed hope that the Donald Trump 2.0 administration would complete its trade negotiations by the end of October, foreign media reported.

The development comes at a time when both sides are reportedly engaged in trade talks ahead of an August 27 deadline when the additional 25 per cent duty on India takes effect. The additional levy — on top of the existing 25 per cent — will take the total tariff on eligible Indian exports to 50 per cent for a host of products. While the initial 25 per cent duty on Indian goods imported into the US took effect on August 7, the next 25 per cent — over and above 25 per cent — are set to come into force on August 27.

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Speaking on the ongoing trade talks with India, Bessent reportedly said: “That’s aspirational, but I think we are in a good position… We will have agreed on substantial terms with all the substantial countries.”

Meanwhile, Prime Minister Narendra Modi is likely to visit the US in September, according to sources. 

During this visit, he is expected to attend the United Nations General Assembly in New York and engage in bilateral talks with the US president, the sources added.

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Several analysts have flagged concerns about the doubling of America’s duty on Indian goods as investors continue to weigh news on US President Donald Trump’s trade policy since his “Liberation Day” announcements on April 2.

According to Goldman Sachs, the 50 per cent duty on Indian exports to the US is set to pose a negative impact of 0.6 percentage points on India’s GDP growth. 

The Reserve Bank of India (RBI) pegs GDP growth for the current financial year at 6.5 per cent, with 6.5 per cent in Q1, 6.6 per cent in Q3, and 6.3 per cent in Q4. 

India has maintained that its relationship with the US is broad, with trade only being a part of it.

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