New Delhi: US Vice President JD Vance on Thursday praised Prime Minister Narendra Modi’s negotiation skills and said that the United States is engaged in “good negotiations” with India to resolve ongoing tariff issues. Speaking in an interview with Fox News, Vance suggested that India could be one of the first nations to finalise a trade agreement under President Donald Trump’s revised tariff regime.
“Prime Minister Modi is a tough negotiator, but the President is committed to rebalancing our trade relationship with India. That’s the motivation behind his current policy,” Vance said.
When asked whether India could be the first country to reach a trade agreement with the US and avoid the proposed high import tariffs, Vance said, “I’m not sure if it will be the very first deal, but India is definitely among the front-runners. We’re also in talks with Japan, South Korea, and several European nations.”
Trump tariffs temporarily paused
President Trump had announced sweeping reciprocal tariffs on April 2, targeting multiple countries, including India and China. However, a week later, he temporarily suspended most of those tariffs until July 9, except those imposed on China and Hong Kong. The suspension came after nearly 75 countries approached the US to begin trade negotiations. Despite the pause, a 10% base tariff remains in place for most affected countries, alongside a 25% duty on imports of steel, aluminium, and automobile components.
India, meanwhile, is said to have offered some concessions related to energy and defense procurement to address US concerns. Nonetheless, Commerce and Industry Minister Piyush Goyal reiterated that India will not enter into any trade agreement under duress, emphasising that national interests will remain paramount.
Trade pact by 2025
During Modi’s visit to Washington in February 2025, both countries agreed to set a goal of increasing bilateral trade to $500 billion by 2030. They also committed to concluding the first phase of a broad-based, multi-sectoral trade agreement by the end of 2025. This deal aims to boost trade in goods and services, enhance market access, reduce tariff and non-tariff barriers, and strengthen supply chain cooperation.
