Vance Meets Modi in New Delhi as Trade Tariff Disputes Persist

Amid rising trade tensions, US Vice President JD Vance visits India aiming to foster stronger bilateral relations with Prime Minister Modi while addressing ongoing tariff disputes between the two nations.

US Vice President JD Vance has landed in India, embarking on a four-day tour that includes key discussions with Prime Minister Narendra Modi in New Delhi. The focus of their initial talks will be to expedite a long-anticipated bilateral trade agreement in the face of escalating tensions surrounding Washington's trade policies.

Vance's visit is particularly significant considering the growing urgency for countries worldwide to finalize trade agreements ahead of a crucial deadline: a 90-day suspension of reciprocal tariffs imposed by President Trump will end on July 9. Reports indicate that Vance and Modi will also deliberate on regional and global matters of mutual interest during their meeting.

Accompanied by his wife Usha, whose family has roots in India’s Andhra Pradesh, and their children, Vance visited the renowned Akshardham temple soon after his arrival on Monday morning. In the evening, Modi is scheduled to host Vance for dinner, further underscoring the importance of their bilateral dialogue.

Tensions have heightened between the US and various countries, including India, following Trump’s announcement of significant tariffs, one of which involved imposing a 27% tariff on Indian products. This escalation prompted India to reduce tariffs on select American goods, as the trade balance currently favors India’s $45 billion surplus.

Historically, the trade relationship between the two nations has been dynamic, with bilateral trade peaking at $190 billion. Modi and Trump previously envisioned a dramatic increase in trade, aspiring to double it to $500 billion and secure agreements for enhanced imports from the United States.

Vance's visit arrives at a crucial time as Trump is anticipated to attend the upcoming Quad summit in India later this year, where he will engage with leaders from Australia and Japan. India’s foreign ministry spokesperson expressed optimism about the potential enhancements to the bilateral relationship that could arise from Vance's engagements during this visit.