Why wouldn’t there be an Indian-US deal during JD Vance visit? What is Donald Trump’s main intention?
JD Vance’s visit came after Modi’s US trip in February, when the two countries were determined to increase bilateral trade to $500 billion by 2030. But almost at the same time, U.S. President Donald Trump announced reciprocal tariffs and announced 26% tariffs.
Prime Minister Narendra Modi and US Vice President JD Vance in New Delhi
Talks between U.S. Vice President JD Vance and Prime Minister Narendra Modi may not reach a trade agreement, but they will certainly lay the foundation for future negotiations and a highly-received bilateral trade agreement. The two leaders are most likely to focus on easing tariff-related tensions, the broader U.S.-China trade war and bilateral trade deal.
JD Vance’s visit follows Modi’s trip to the United States in February, when the two countries were determined to increase bilateral trade to $500 billion in 2030. But almost at the same time, U.S. President Donald Trump announced tariffs on stocks and announced a 26% tariff on Indian goods in a few weeks. Although he has paused it for 90 days, he sets an alarm bell to ring.
Negotiations on tariffs and preferential treatment
In this case, JD Vance came to India with high expectations and high bets. Political observers believe that senior officials in both countries may negotiate specific tax cuts, and India may offer tariffs on imports from sectors such as electronics, medical equipment and agriculture to avoid reciprocal U.S. tariffs.
Will India cut tariffs further?
If the report can be trusted, New Delhi could propose further tariffs on U.S. goods, based on the recent cut of 13% to 11%. Officials in two major democracies may discuss exemptions from specific sectors, especially for Indian exports such as shrimp, gemstones, jewelry and medicines.
India-US defense cooperation?
Vance may put pressure on India to buy more military hardware from Washington after Donald Trump rolled the ball to India during Modi’s visit. The two countries may discuss defense partnerships, including joint-made weapons such as javelin missiles and Strick vehicles. In addition, U.S. nuclear technology investment can also be discussed. These measures could strengthen India’s strategic position in the Indo-Pacific balanced China.
We use it to fight against China?
When negotiating business and strategic issues, China is most likely to figure out how and what the United States might consider responding to the Communist regime. New Delhi is in a state of strength after Trump raised China’s tariffs to a 245% irony level and retaliated with 125% tariffs. It could position itself as a reliable alternative supplier to the United States to leverage its $190 billion bilateral trade to ensure better conditions.
No India-US deal?
However, no trade agreement is expected to be signed during Vance’s visit. Both sides may just be the basis for future deals and prepare for President Trump’s potential visit later in 2025. The visit of the U.S. vice president seems to be exploratory, so further negotiations can be conducted during the 90-day tariff suspension.
