‘At The End of The Day, We Will Come Together’, US Treasury Secy Hopes Amid India Tariff Tiff

Washington and New Delhi's trade standoff escalated further on Wednesday as US President Donald Trump's unilateral 50% tariff on Indian goods came into effect, weeks after an additional 25% penalty was imposed on India over its purchases of Russian oil and defence equipment. However, US Treasury Secretary Scott Bessent has expressed confidence in India-US ties.

In an interview with Fox Business, US Treasury Secretary said, “I do think India's the world's largest democracy, the US is the world's largest economy. I think at the end of the day we will come together.”

Bessent noted that the relationship between President Trump and Prime Minister Narendra Modi remains cordial, but described the trade negotiations as complicated. He revealed that Washington had expected a breakthrough by May or June, yet India has taken a slower approach to finalising an agreement.

“The Indians came in early after Liberation Day to start negotiating on tariffs and we still don't have a deal,” Bessent said, adding that New Delhi's continued purchases of discounted Russian crude had added another layer of friction. He argued that much of India's stance in the talks had been “performative”.

Highlighting the structural imbalance in bilateral trade, Bessent said, “The US is the deficit country. When there is a schism in trade relations, the deficit country's at an advantage. It's the surplus country that should worry. So the Indians are selling to us. They have very high tariffs and we have a very large deficit with them.”

On the financial front, the Treasury Secretary dismissed speculation about the rupee emerging as a global reserve currency. “A lot of things I worry about. The rupee becoming the reserve currency isn't one of them,” he remarked. He also pointed out that the Indian currency is currently near an all-time low against the US dollar, underlining New Delhi's economic vulnerabilities as the tariff conflict unfolds.

India and the United States remain engaged in discussions to resolve their ongoing tariff standoff, with officials maintaining regular contact to find a mutually acceptable way forward.

Despite the differences on tariff issues, both governments have underlined that the broader bilateral relationship is not confined to trade alone. Strategic, defence, technology, and investment ties continue to expand, reflecting the depth and resilience of the partnership.

At the same time, India has reiterated its firm position on protecting sensitive sectors. Agricultural and dairy products remain red lines for New Delhi, with policymakers stressing that domestic interests in these areas cannot be compromised in any trade negotiation.