U.S. Vice President JD Vance’s visit to India has brought a significant breakthrough in Indo-U.S. trade relations amid a tense backdrop of reciprocal tariffs. During his ongoing four-day visit to India with his wife Usha Vance and their children, Vance announced that the two nations have finalised the terms of reference for trade negotiations, setting a structured roadmap for a future bilateral trade agreement.
This comes after months of uncertainty triggered by President Donald Trump's imposition of 26% reciprocal tariffs, which disrupted several key industries globally. In a gesture of temporary relief, Trump had paused the tariffs for 90 days, allowing room for negotiation — a window India used to protect its interests while keeping talks alive.
“I believe this is a vital step toward realising President Trump’s and Prime Minister Modi’s vision, because it sets a road map toward a final deal between our nations,” said Vance.
After a meeting with Prime Minister Narendra Modi in New Delhi, Vance praised the Indian leader's sharp negotiation skills:
“PM Modi is a tough negotiator. He drives a hard bargain. One of the reasons we respect him.”
The Vice President also took a markedly respectful and partnership-driven tone, a notable shift from past U.S. diplomatic approaches. In a speech delivered in Jaipur, Vance emphasized:
“We’re not here to preach that you do things any one particular way. Too often in the past, Washington approached Prime Minister Modi with an attitude of preaching… Prior administrations saw India as a source of low-cost labour.”
Highlighting the evolving perception of India in U.S. policy, Vance made it clear that the current administration sees India not just as an ally, but as an equal and strategic partner. He also lightheartedly acknowledged Modi’s immense popularity, saying:
“As I told Prime Minister Modi last night, he’s got approval ratings that would make me jealous.”
Vance’s visit, against the backdrop of recalibrated U.S.-India relations under a second Trump administration, reflects a strategic pivot to strengthen ties with India, both economically and geopolitically — especially as the global balance shifts amid tensions with China and protectionist trade policies.
Further updates from the Vance delegation, particularly details of the trade roadmap and potential sector-specific cooperation, are expected in the coming days.
