Vance Set to Strengthen US-India Ties Amidst Ongoing Trade Tensions with China

Vance Set to Strengthen US-India Ties Amidst Ongoing Trade Tensions with China

This coming week, US Vice-President JD Vance is set to lead a high-powered four-day trip to India. Such events could prove timely, as trade confrontations between the U.S. and China intensify. His trip comes on the heels of Director of National Intelligence and former Congresswoman Tulsi Gabbard’s participation in a pro-Indian government geopolitical conference in India. This is a significant shift back toward international relations with the new administration.

Vance’s visit for April 21. To get this heavy lifting started, President Biden will open the summit with a meeting to Indian Prime Minister Narendra Modi on that very first day. The two leaders will discuss how to improve economic, trade, and geopolitical relationships between their countries. According to India’s foreign ministry, “The visit will provide an opportunity for both sides to review the progress in bilateral relations.”

Vance’s first stop before arriving in Delhi will be Italy on April 18. This stop is only one piece of a much wider itinerary that includes just one other country—India. His vice president–elect’s extended family will be along for the ride, including the vice-president’s wife Usha Vance, whose parents actually migrated from Andhra Pradesh, India.

The backdrop of Vance’s visit is significant. The United States just recently enacted retaliatory tariffs on even more goods from India. In return, China struck back with tariffs up to 125% on American goods. This tit-for-tat has contributed to an ever more hostile economic environment for cross-border trade.

In President Trump’s administration, Vance has emerged as one of the principal U.S. diplomatic emissaries abroad. Until the last couple of years, India and the United States have had a robust trading relationship. Bilateral trade skyrocketed to a staggering $190 billion (£144 billion). Both leaders have made it a priority to increase this number, with an ambitious goal of increasing bilateral trade by $500 billion per year.

This meeting comes at a particularly challenging time, where we faced increased tariffs and trade barriers. That’s a big deal considering that on April 2, India faced a new 27% tariff on its exports to the US. Soon after this legislative action, a temporary pause was announced. Under President Trump, that trade war has gotten a lot worse. For example, he has unilaterally imposed tariffs that could reach as high as 245% on some products.

Second, the United States is currently navigating some contentious and complicated trade relationships. Over the course of Vance’s upcoming visit, he should seek spaces for cooperation with Modi on these fronts.

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