US Vice-President Vance Arrives in Delhi for Talks with Modi Amid Tariff Disputes

US Vice-President JD Vance has landed in India to engage in critical trade discussions with Prime Minister Modi, as both countries eye solutions amidst rising tariff disputes stemming from US policy changes.

US Vice-President JD Vance has commenced his four-day visit to India, arriving in the capital New Delhi where he is scheduled to engage in high-profile discussions with Prime Minister Narendra Modi. These talks are particularly pertinent given the rising global trade tensions, ignited by previous tariff policies enacted by Washington.

The agenda for these discussions is expected to prioritize accelerating a crucial bilateral trade agreement that both nations have long sought to finalize. Vance's family is accompanying him, and he is also slated to visit notable cultural sites in Agra and Jaipur during their stay.

This diplomatic engagement comes at a critical time as various countries scramble to refine trade agreements ahead of an impending deadline—the 90-day suspension on reciprocal tariffs implemented by US President Donald Trump, which is set to conclude on July 9. According to India's foreign ministry, Vance and Modi will also delve into regional and global issues that matter to both countries.

Vance's family lineage, with roots tracing back to Andhra Pradesh, adds a personal touch to this visit. Following his arrival in New Delhi, the Vice-President made a stop at the renowned Akshardham temple complex before his formal talks later in the day, which will include a dinner hosted by Modi.

As the nations grapple with escalating tariff squabbles, the backdrop of Vance’s trip is Trump's previous declarations that positioned India as a “tariff abuser.” While Trump has imposed an extensive 27% tariff on Indian imports, India has already responded by reducing tariffs on specific US goods, with further modifications anticipated as the trade imbalance heavily favors India, boasting a trade surplus of $45 billion.

Historically, India has maintained an average tariff rate of around 12%, significantly surpassing the US's 2%. The trade relations between India and the US have evolved rapidly, once featuring the US as India's foremost trading partner, with bilateral trade figures soaring to approximately $190 billion.

During Modi's previous warm interactions with Trump, a goal was set to elevate bilateral trade to $500 billion. This ambitious target encompassed increased US exports to India, including critical sectors such as oil and gas. The visit from Vance is positioned as an essential precursor to Trump's anticipated trip to India later this year for the Quad summit, which will assemble leaders from along with Australia and Japan.

In remarks leading up to Vance's India visit, foreign ministry spokesperson Randhir Jaiswal expressed optimism about the potential enhancement of bilateral relations resulting from this engagement.