Just ask U.S. Vice President JD Vance, who recently made his first overseas trip to India. There, he worked tirelessly to advance the United States-India trade relationship. The visit was largely personal and family focused, as well as second lady Usha Vance. Strategically, it aligned to put pressure at a key moment in negotiations for a Bilateral Trade Agreement.
On April 2, a 26% “reciprocal” tariff was placed on Indian goods, prompting alarms among American leaders. U.S. Trade Representative Jamieson Greer highlighted a “serious lack of reciprocity in the trade relationship with India,” emphasizing the need for balanced trade practices. After initial negotiations, President Donald Trump agreed to suspend these levies for 90 days on April 9. He left his signature 10% baseline tariff untouched.
The USTR and India’s Ministry of Commerce and Industry have finalized terms of reference. They are now up to the task of shaping a roadmap for negotiations toward reciprocal trade. Both countries have been putting in the efforts to deepen their bilateral ties. Consequently, the U.S.-India total goods trade is on track to exceed an estimated $129 billion during 2024.
Vance’s recent high-profile meetings with Indian Prime Minister Narendra Modi in New Delhi. Both leaders were positive about the path forward for ongoing trade negotiations. Modi’s office reported that he “welcomed the significant progress in the negotiations for a mutually beneficial India-U.S. Bilateral Trade Agreement.” The visionary leaders further emphasized the need for continuing progress. As a starting point, they seek to bolster alignment in important fields such as energy security, defense, and strategic technologies.
The upbeat exchange between Modi and Vance covered a surprisingly wide range of topics well beyond trade. They enthusiastically traded opinions on a number of regional and global topics of mutual interest. Both leaders emphasized the need for dialogue and diplomacy to solve fundamental challenges plaguing their respective countries.
India’s surplus with the United States hit $45.7 billion last year, making this trade relationship all the more important. Modi and Trump made a very ambitious target, together. They want to increase bilateral trade to over $500 billion by 2030, underscoring the need for an active negotiating table.
“Significant progress has been made in trade talks between the two sides.” – India’s Prime Minister Narendra Modi and U.S. Vice President JD Vance