The United States and India are close to finalizing a trade agreement that would prevent steep tariff hikes set to take effect next week, Treasury Secretary Scott Bessent said Tuesday.
“We are very close,” Bessent told Fox News, indicating the two sides are working to resolve sticking points on tariffs covering automotive parts, steel, and agriculture ahead of a July 9 deadline.
The Trump administration’s 90-day pause on reciprocal tariff increases expires next week, and India is among several nations negotiating to avoid a jump in levies—from 10% to potentially 27%—on U.S.-bound exports.
Indian officials extended their Washington visit in hopes of clinching a deal. Foreign Minister Subrahmanyam Jaishankar said talks were ongoing and that he remained “hopeful,” though no guarantee could be given. “There’s another party to this discussion,” he added at a New York event.
A deal with India would mark a rare diplomatic breakthrough in Trump’s increasingly aggressive trade posture. Other nations, including Japan and Brazil, are also racing to finalize agreements before the deadline.
A U.S.-India accord could bolster ties between the two countries while averting higher prices for key goods and reducing uncertainty for businesses navigating shifting global trade policies.
