Treasury Secretary Scott Bessent indicated that India is likely to be the first country to reach a bilateral trade agreement avoiding President Trump’s “reciprocal” tariffs, while negotiations with China are currently on hold.
At a DC roundtable with reporters during the World Bank and IMF meetings, Bessent said talks with India were “very close” to completion, citing India’s relatively lower tariffs and fewer trade barriers compared to other nations. He specifically noted India has “fewer non-tariff trade barriers, obviously, no currency manipulation, very, very little government subsidies,” making an agreement more straightforward.
Vice President JD Vance and Indian Prime Minister Narendra Modi recently announced a roadmap for trade negotiations to avoid potential 26% tariffs that could take effect in early July. The Trump administration is demanding that trading partners reduce their tariffs on American goods and eliminate U.S. trade deficits.
Regarding China, Bessent indicated negotiations are not progressing, though he considers the current tariff rates exceeding 145% on Chinese imports unsustainable. Bessent also mentioned ongoing discussions with America’s top 15 trading partners apart from China, including Japan, South Korea, Vietnam, and the UK.
Last updated: December 26th, 2025
