Vance Visits India: Trade Talks with Modi Amid Tariff Disputes

JD Vance arrives in India for talks with Prime Minister Modi, striving to overcome trade tensions as bilateral relations remain a priority.

 

US Vice-President JD Vance has commenced a significant four-day visit to India, landing in the capital with intentions to engage in critical discussions with Prime Minister Narendra Modi. This timely visit occurs against the backdrop of escalating global trade tensions, particularly concerning tariff policies introduced by Washington. The primary agenda for the dialogues is expected to revolve around expediting the highly anticipated bilateral trade agreement between the two nations.

Beyond trade discussions, Vance's itinerary includes sightseeing excursions to notable sites such as Agra and Jaipur, accompanied by his family. The urgency of Vance's mission is underscored by a looming deadline; nations worldwide are hastily pursuing trade agreements ahead of US President Donald Trump’s 90-day deferment on reciprocal tariffs, which will come to an end on July 9.

In preparation for their discussions, India’s foreign ministry announced that both leaders would also cover a range of regional and global issues of shared interest. Vance arrived in Delhi Monday morning, where he visited the Akshardham temple complex before his scheduled formal talks with Modi later that day. Modi is slated to host a dinner for Vance in the evening, further symbolizing the ties between the two nations.

This visit takes place amid a backdrop of rising trade tensions orchestrated by Trump's declaration of considerable reciprocal tariffs against several countries, labeling India a tariff abuser. Prior to a pause on April 9, Trump had imposed an eye-catching 27% tariff on Indian goods. In response, India has taken steps to lower tariffs on some US exports, reflecting ongoing efforts to balance trade in light of India’s $45 billion trade surplus with the US, where average tariffs are around 12%—significantly higher than America’s 2%.

Once the largest trading partner for India, bilateral trade between the US and India has reached $190 billion. This growing partnership continues as the two leaders aim to elevate trade beyond $500 billion, following a dialogue that emphasized India's commitment to increasing imports of US commodities, including oil and gas.

Earlier visits by US officials, including Tulsi Gabbard and trade representatives, indicate the prioritization of US-India relations. Acknowledging the importance of Vance’s visit, spokesperson Randhir Jaiswal from the Indian foreign ministry expressed optimism that the discussions would further solidify bilateral ties, particularly as President Trump plans to attend the upcoming Quad summit, which will also feature leaders from Australia and Japan.