The recent discussions between Indian Prime Minister Narendra Modi and US Vice-President JD Vance indicate progress in bilateral trade negotiations ahead of potential tariff increases. Modi emphasized the commitment to mutual cooperation in various sectors, including trade and defense.
Modi and Vance Align on Trade Negotiations Amid Rising Tariff Concerns
Modi and Vance Align on Trade Negotiations Amid Rising Tariff Concerns
India and the US are bolstering their trade discussions as higher tariffs loom following a meeting between Prime Minister Modi and Vice-President Vance.
In Delhi, Indian Prime Minister Narendra Modi and US Vice-President JD Vance have expressed optimism regarding ongoing trade negotiations between their countries. The meeting, part of Vance’s four-day visit to India, highlighted a shared commitment to enhance cooperation across trade, technology, defense, and energy sectors. Modi took to social media platform X to affirm their partnership after hosting Vance and his family for dinner.
The context of these discussions is crucial, as India faces the potential implementation of a 27% tariff by the US when a 90-day grace period initiated by President Trump concludes on July 9. During this pause, India and the US have been motivated to expedite trade agreements to mitigate adverse economic impacts.
While Narendra Modi and Donald Trump maintain a personal rapport—evidenced by Modi being one of the initial leaders to visit Trump following his reelection—the US administration has been vocal about India's elevated tariffs, describing the nation as a “tariff king.” In a post-meeting statement, US Trade Representative Jamieson Greer remarked on the ongoing “serious lack of reciprocity” in bilateral trade relations.
In a bid to foster better ties, India has already reduced tariffs on several goods, and further cuts are being contemplated to appease the US. However, sticking points remain, particularly in the agriculture sector where Washington seeks expanded access, yet India staunchly defends its local markets.
Beyond trade, the discussions encompassed themes of defense and strategic technology collaboration, alongside energy initiatives. Modi expressed enthusiasm about Trump's anticipated visit to India later this year, coinciding with the Quad summit that will include leaders from allied nations.
Vance’s visit also carries personal significance, as he arrived with his wife, Usha, whose family hails from Andhra Pradesh. The couple is eager to imbue their children with knowledge of their Indian heritage. Family outings included a trip to Jaipur’s Amer Fort, with plans to visit the iconic Taj Mahal before Vance returns to the United States.
For more updates on this developing story, follow BBC News India across social media platforms.
The context of these discussions is crucial, as India faces the potential implementation of a 27% tariff by the US when a 90-day grace period initiated by President Trump concludes on July 9. During this pause, India and the US have been motivated to expedite trade agreements to mitigate adverse economic impacts.
While Narendra Modi and Donald Trump maintain a personal rapport—evidenced by Modi being one of the initial leaders to visit Trump following his reelection—the US administration has been vocal about India's elevated tariffs, describing the nation as a “tariff king.” In a post-meeting statement, US Trade Representative Jamieson Greer remarked on the ongoing “serious lack of reciprocity” in bilateral trade relations.
In a bid to foster better ties, India has already reduced tariffs on several goods, and further cuts are being contemplated to appease the US. However, sticking points remain, particularly in the agriculture sector where Washington seeks expanded access, yet India staunchly defends its local markets.
Beyond trade, the discussions encompassed themes of defense and strategic technology collaboration, alongside energy initiatives. Modi expressed enthusiasm about Trump's anticipated visit to India later this year, coinciding with the Quad summit that will include leaders from allied nations.
Vance’s visit also carries personal significance, as he arrived with his wife, Usha, whose family hails from Andhra Pradesh. The couple is eager to imbue their children with knowledge of their Indian heritage. Family outings included a trip to Jaipur’s Amer Fort, with plans to visit the iconic Taj Mahal before Vance returns to the United States.
For more updates on this developing story, follow BBC News India across social media platforms.
