'India and US are trying to resolve trade issues', says Scott Bessent amid tariff standoff

US Treasury Secretary Scott Bessent has said that India and the US will eventually come together and work to resolve the trade issue, adding that communication lines between the two countries remain open.

Speaking hours after President Donald Trump’s punitive tariffs came into effect in India on Wednesday, Bessent said, “I think at the end of the day, we will come together. Both sides have concerns on how this will play out and both sides are looking to resolve them. Communication channels are open.”

Bessent claimed that the US currently has the upper hand in trade negotiations, which have been paused after the 50 per cent tariffs kicked in. He expressed dissatisfaction over New Delhi continuing to purchase Russian oil.

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“This is a very complicated relationship. But President Trump and Prime Minister Modi have very good relationships at that level," he told Fox Business.

‘Thought we would have a deal by now’

The US Treasury Secretary said that he believed India and the US would have a deal by May or June, as he called New Delhi’s actions “performative”.

The official further said, “I thought India could be one of the earlier deals. And they kind of tapped us along in terms of the negotiations. And then there is also the aspect of the Russian crude purchases, which they’ve been profiteering on. So there are many levels going on here.”

External Affairs Minister S Jaishankar said last week, “If you have a problem buying oil or refined products from India, don’t buy it. Nobody forces you to buy it. Europe buys, America buys, so if you don’t like it, don’t buy it.”

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India intensifies exports

An official from the Ministry of Commerce told Reuters that the government has “no hopes for any immediate relief or delay in US tariffs.” However, the government has readied mechanisms to provide financial assistance to exporters who are affected by Trump tariffs, the official added.

Authorities are also encouraging exporters to diversify to alternative markets, including China, Latin America and the Middle East. “The government has identified nearly 50 countries for increasing Indian exports, particularly of textiles, food processed items, leather goods, marine products,” the official said.