In a notable diplomatic visit, U.S. Trade Representative Vance arrived in Delhi on Monday to engage in discussions with Indian Prime Minister Narendra Modi. Here’s why this meeting is so important. At a time when the United States and India are experiencing increasing tariff tensions, both countries are looking to build on their burgeoning bilateral trade relationship.
Just this past week, when former President Donald Trump levied new unprecedented 27% tariff on Indian products. On April 9, he halted this decision, at least for the time being. The move has prompted scrutiny given that India’s average tariffs stand at approximately 12%, significantly higher than the United States’ average of just 2%. The U.S. has instituted a 90-day pause on reciprocal tariffs, which will conclude on July 9, prompting countries worldwide to expedite negotiations with the U.S. before the deadline.
Bilateral trade between the U.S. and India last year reached an astounding $190 billion. India basked in the glow of a record trade surplus of $45 billion. It’s a sign that both nations are serious about their new, ambitious goal to increase their bilateral trade more than doubling it—to $500 billion. Additionally, India has already volunteered to slash tariffs on specific American products ahead of these never-ending tariff talks. With the trade balance continuing to strongly favor India, additional cuts are forthcoming.
On his trip, Vance had a chance to visit the Akshardham temple complex in Delhi with his wife, Usha Vance, and their children. Extending family, Usha’s family has deep connections to India, as her parents emigrated from Andhra Pradesh to the United States.
Senator Vance is scheduled to meet Prime Minister Modi later today. They’ll be tackling a laundry list of trade irritants and seeking to find ways to improve economic connections between their two countries. In addition to the official meetings, Modi is now expected to host Vance for dinner that night.
“I am very positive that the visit will give a further boost to our bilateral ties.” – Randhir Jaiswal
As the global trading environment continues to change, both countries are eager to strengthen their bilateral relationship while economic conditions continue to change rapidly worldwide. Whatever the result of Vance’s talks with Modi, we hope it will lead to meaningful improvements in U.S.-India trade relations.