The United States could soon sign one of its first new trade agreements with India, according to US Treasury Secretary Scott Bessent. Speaking to CNBC on April 28, Bessent hinted that India is in the front row when it comes to finalising trade pacts aimed at heading off potential tariffs.
"I would guess that India would be one of the first trade deals we would sign," Bessent said, adding that talks with Japan and other Asian partners were also moving along nicely.
Bessent revealed that discussions with Japan and South Korea had made “very substantial” progress. He also pointed out that Vice President Vance's recent visit to India had helped accelerate negotiations.
However, when it comes to China, things seem far more complicated. Bessent made it clear that while channels of communication remain open, it is largely up to Beijing to take the first steps towards de-escalating tensions.
"We'll see where this goes," Bessent said. He noted that the trade imbalance — with China selling five times more to the US than the other way round — makes the current situation, including 125% tariffs, difficult to sustain.
China has reportedly exempted some goods from tariffs, which Bessent sees as a possible sign that Beijing may be interested in easing hostilities. Yet he also warned that escalation measures, such as an embargo, were on standby if needed.
China on the back burner
For now, Bessent said the US is focusing on wrapping up deals with around 15 to 17 countries, effectively putting China "to the side" in the short term. These talks are part of a broader effort to rework America's trade relationships after recent tensions.
US officials did meet their Chinese counterparts during the IMF-World Bank meetings in Washington, DC, last week. However, the discussions mainly centred around "financial stability," and not trade negotiations, according to Bessent.
Bessent also mentioned that President Donald Trump would be “intimately involved” in each of these bilateral agreements. The aim is to move quickly and secure agreements in principle with each of these trading partners.
When asked whether he would personally reach out to China to restart talks, Bessent kept things open-ended: "We'll see what happens with China," he said during an interview with Fox News.
