Modi and Vance talk trade deal as Trump’s tariffs loom

US Vice President J.D. Vance met Indian Prime Minister Narendra Modi in New Delhi on Monday to discuss progress on a bilateral trade deal between the two countries. The meeting comes during a 90-day pause on new US tariffs announced by President Donald Trump earlier this month.

According to a statement by the prime minister’s office, the talks focused on trade, technology and defense cooperation. The two sides “welcomed the significant progress in the negotiations for a mutually beneficial India-US Bilateral Trade Agreement focused on the welfare of the people of the two countries,” the statement read. 

Fast-tracking a trade agreement is a priority for the two countries, as they aim to double India-US bilateral trade by 2030, as agreed by Modi and US President Donald Trump during their meeting in Washington in February. The prime minister was one of the first world leaders to meet Trump after he took office. The US president has repeatedly called India a “tariff abuser” and the “tariff king,” while he also referred to Modi as “a tough negotiator.”

At the moment, however, there is uncertainly in the South Asian country over trade with the US after Trump imposed steep tariffs on nations around the world including India, although he later delayed the duties for 90 days.

New Delhi has not reacted to Trump’s move, publicly stating that it will “study the implications” of the tariffs on India’s exports to the US. At the same time, local media reports suggested that the Indian government is seeking to fast-track a trade deal with Washington that will address both tariffs and non-tariff barriers to expanding trade.  Reuters reported earlier that the Modi government is open to cutting tariffs on more than half of its imports from the US, which were worth a total $41.8 billion in 2024, as part of a trade deal. 

Vance’s visit to India is his first official trip to the country as vice president. He was accompanied by his wife Usha Vance, who has Indian roots, and their children. Modi and Vance held closed-door meetings at the prime minister’s residence before the vice president and his family travel to the cities of Jaipur and Agra. 

The United States is India’s largest trading partner, with bilateral trade reaching $131 billion in the last fiscal year, according to government data. India exports more to the US than it imports, resulting in a trade surplus of over $41 billion.