Progress in trade negotiations is praised by Modi and Vance as heavier tariffs

 

India and US Advance Bilateral Trade Talks During VP Vance's Visit to Delhi

India and the United States are making steady progress in finalizing a bilateral trade agreement, according to a joint announcement following a meeting between Prime Minister Narendra Modi and U.S. Vice President JD Vance in New Delhi. Vance, accompanied by his wife and their three children, is currently on a four-day visit to India.

After Monday night’s meeting, Prime Minister Modi shared on X (formerly Twitter), “We are committed to a mutually beneficial partnership across key sectors such as trade, technology, defense, energy, and people-to-people ties.” He also hosted Vance and his family for dinner at his residence.

India is among several nations in active trade negotiations with the United States as the tariff increases implemented during President Donald Trump’s administration are set to expire on July 9.

Before the suspension of those tariffs was announced, India was facing duties as high as 27% on exports to the U.S. Since then, both Delhi and Washington have intensified efforts to conclude a trade agreement at the earliest.

Prime Minister Modi was one of the first global leaders to visit President Trump following the beginning of his second term—an indication of their strong personal rapport. Nevertheless, Trump has repeatedly criticized India’s high tariff structure, labeling it a “big abuser” in trade and dubbing it the “tariff king.”

U.S. Trade Representative Jamieson Greer also highlighted the “severe lack of reciprocity in the economic relationship with India” in a statement issued on Monday, following Vance’s meetings.

In a bid to address U.S. concerns, India has reportedly already reduced tariffs on several goods and is now considering broader concessions. However, Washington continues to push for greater access to key sectors, including agriculture.