US Vice-President JD Vance in Delhi to Meet PM Modi Amid Growing Tariff Tensions

United States Vice-President JD Vance has arrived in New Delhi for a four-day official visit aimed at reinvigorating India–US trade relations amid rising global concerns over Washington’s escalating tariff policies.

During his stay, Vance is scheduled to hold high-level talks with Indian Prime Minister Narendra Modi, with the spotlight expected to fall on fast-tracking a long-pending bilateral trade agreement and addressing trade imbalances between the two nations.

Focus on Trade Talks Ahead of Tariff Deadline

Vance’s visit comes as global trading partners race to finalize bilateral trade pacts ahead of a looming July 9 deadline, which marks the end of U.S. President Donald Trump’s 90-day suspension of steep reciprocal tariffs.

Trump’s recent tariff announcement had included a 27% levy on Indian exports, a move temporarily paused on April 9 following diplomatic back-channel negotiations. Nonetheless, tensions remain high, and Vance’s discussions with Modi are seen as crucial in averting further trade disruption.

According to India’s Ministry of External Affairs, the two sides will also exchange views on “regional and global developments of mutual interest.”

A Visit Laden with Symbolism

The Vice-President is accompanied by his wife Usha Vance, whose parents emigrated from Andhra Pradesh, and their children. On Monday, the family paid a visit to the Akshardham temple in Delhi — a gesture seen as underscoring cultural ties between the two democracies.

Vance is also expected to visit Agra and Jaipur with his family, combining diplomacy with soft engagement.

Later today, he will meet Prime Minister Modi for formal discussions, followed by a state dinner hosted by the Indian leader.

Trade Balance and Tariff Dynamics

India currently enjoys a $45 billion trade surplus with the U.S., and while it has made partial tariff reductions on American goods, further adjustments are anticipated. India’s average tariff rate stands at approximately 12%, compared to the U.S. average of 2%, contributing to the ongoing dispute.

Until recently, the United States was India’s largest trading partner, with bilateral trade reaching $190 billion in 2024.

Prime Minister Modi and President Trump had previously pledged to double bilateral trade to $500 billion, with commitments on India's part to increase imports from the U.S., including sectors such as energy, agriculture, and technology.

Strategic Context

The visit also comes ahead of a planned visit by President Trump to India later this year for the Quad Leaders Summit, which will also include Australia and Japan.

In the lead-up to Vance’s arrival, several U.S. delegations have visited India in recent weeks, including Director of National Intelligence Tulsi Gabbard and Assistant Trade Representative Brendan Lynch, signaling renewed American focus on the Indo-Pacific region.

“Delhi is very positive that the visit will give a further boost to our bilateral ties,”
said Randhir Jaiswal, spokesperson for India’s Ministry of External Affairs.

Outlook

As global markets adjust to new trade realities, Vance’s visit may set the tone for a recalibrated India–U.S. economic partnership, balancing national interests with shared geopolitical concerns.

Observers believe this engagement could help stabilize the bilateral economic agenda, reduce tariff friction, and pave the way for deeper strategic collaboration between the world’s two largest democracies.