Unlock the White House Watch newsletter for free
Your guide to what Trump’s second term means for Washington, business and the world
US vice-president JD Vance has hailed what he called “very good progress” on a trade agreement between Washington and New Delhi, in comments during the highest level visit to India yet by an official of Donald Trump’s second administration.
In a speech in the north-western city of Jaipur, Vance praised Indian Prime Minister Narendra Modi as “a serious leader who has thought deeply about India’s future prosperity and security”, while also describing him as a “very tough negotiator” who “drives a hard bargain”.
Vance’s description of the US-India partnership as one of the most important diplomatic relationships in the world — and his generally warm words for New Delhi — contrast with the hostility the Trump administration has shown towards many traditional friends and allies.
Trump has said India’s protectionist policies make it the “tariff king”, but he has also called Modi a “great friend”, and the two leaders are ideologically aligned.
Officials of the US government, industry executives and lobbyists have said the Trump administration intends to press India to give online retailers such as Amazon and Walmart full access to its $125bn ecommerce market as part of the planned trade deal.
Vance confirmed that India and the US had agreed on terms for the negotiation on the bilateral deal, the first tranche of which the two countries say they will agree by autumn.
Without an agreement, India faces the threat of a 26 per cent “reciprocal” tariff on its exports to the US. Trump has paused the measure for 90 days so negotiations can take place.
“America and India have officially finalised the terms of reference for the trade negotiation,” Vance said, adding that this was “a vital step” because it set out “a road map towards a final deal between our nations”.
Modi’s government is moving quickly to negotiate the deal, which will cover products ranging from food to ecommerce and cars.
After meeting the US vice-president and his family in New Delhi on Monday, Modi said in a post on X that they had “reviewed the fast-paced progress” made since he met Trump in Washington in February.
The US is India’s largest trading partner, and the two countries have said they want to boost bilateral trade of goods and services to $500bn, more than double the current amount, by 2030.
US officials are pressing the Modi government to lower trade barriers and non-tariff barriers in a country with some of the world’s highest average import duties.
Before and after Modi’s US visit, India announced a round of largely symbolic tariff cuts on bourbon, luxury cars and large motorcycles, the last to address a long-running Trump complaint about duties on Harley-Davidson bikes.
To reduce India’s trade surplus, Modi has also promised to buy more US oil and gas, though it has closer and cheaper suppliers in the Middle East and Russia. Vance suggested the world’s fifth-largest economy should also drop some non-tariff barriers.
Recommended
The vice-president welcomed a Modi government announcement from earlier this year lifting restrictions on the import of US small modular reactors and the construction of US-designed reactors in India. “American energy can help realise India’s nuclear power production goals,” Vance said. “There is no future without energy security and energy dominance.”
New Delhi and Washington have been drawing closer on defence and technology because of their shared distrust of China, with which India shares a long, disputed border. The vice-president said India should “buy more of our military equipment, which of course we believe is the best in class”.
“I really believe that the future of the 21st century is going to be determined by the strength of the United States-India partnership,” Vance said. “I also believe that if we fail to work together successfully, the 21st century could be a very dark time for all of humanity.”
