In a series of candid remarks on July 31, 2025, US Treasury Secretary Scott Bessent offered a mixed outlook on global trade negotiations, expressing optimism about a potential deal with China while voicing clear frustration over stalled talks with India. With the August 12 tariff deadline looming, Bessent’s comments have stirred diplomatic circles and market watchers alike.
Key Highlights:
Bessent confirmed plans to meet with former President Donald Trump on Thursday to discuss the August 12 deadline for China tariffs.
He expressed confidence that a deal with China is within reach, citing constructive negotiations and mutual interest in de-escalation.
On India, Bessent was notably critical, stating that the US trade team is frustrated and uncertain about India’s commitment to a deal.
China Trade Talks: Optimism Amid Complexity
Bessent’s tone on China was markedly upbeat, suggesting that the two sides are nearing a breakthrough.
He stated that the US and China have the makings of a deal and emphasized that negotiations have reached a new level of constructiveness.
Talks are expected to continue in Stockholm next week, with both sides aiming to extend the current 90-day tariff suspension.
Bessent acknowledged China’s tough negotiating stance but praised their willingness to engage on key issues, including manufacturing excess and consumer economy reforms.
The US is also pushing China to address concerns over sanctioned oil imports and its role in the Russia-Ukraine conflict.
India Trade Talks: Friction and Uncertainty
In contrast, Bessent’s remarks on India revealed growing tensions and a lack of progress.
He criticized India’s global trade posture, saying the country has not been a great global actor in recent negotiations.
The US trade team is reportedly frustrated with India’s reluctance to commit to key terms, particularly around market access and regulatory transparency.
Bessent admitted uncertainty about the outcome, stating that it will ultimately be up to India to decide whether it wants to move forward.
These comments come amid broader concerns over India’s alignment with Russia and its protectionist trade policies.
Political and Economic Implications
Bessent’s statements are likely to influence upcoming discussions in Parliament, where Commerce Minister Piyush Goyal is expected to address the House on US tariffs and India’s trade strategy.
The INDIA bloc has already begun criticizing the government’s handling of trade talks, linking it to broader foreign policy failures.
Market analysts warn that failure to secure a deal with the US could impact key export sectors, including pharmaceuticals, textiles, and IT services.
Strategic Outlook
With China talks showing promise, the US may prioritize finalizing that deal before turning full attention to India.
India’s stance will be closely watched in the coming days, especially as pressure mounts from domestic industries and political opposition.
Bessent’s remarks underscore the urgency of diplomatic recalibration and the need for India to clarify its trade objectives.
Conclusion
Scott Bessent’s dual-track commentary on China and India paints a complex picture of US trade diplomacy. While China appears ready to engage constructively, India’s hesitancy could delay or derail a potential agreement. As the August 12 deadline approaches, both countries face critical decisions that could shape their economic trajectories and global standing.
Source: CNBC, WION, The Independent – July 31, 2025
