Economy

Trump's global trade war casts shadow over Vance's crucial India trip

Published On Mon, 21 Apr 2025
Anaya Vardhan
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JD Vance is set to begin his visit to India on Monday, a trip that unfolds during a tense period of global trade disputes initiated by President Donald Trump. While trade talks dominate the agenda, the journey also holds both political and personal relevance for the U.S. Vice President. As Vance lands in India, the U.S. is warning of a possible hike in tariffs—from the current 10% to 26% on Indian exports—unless an agreement is reached within a 90-day grace period introduced by Trump earlier this month.

Prime Minister Narendra Modi is expected to host Vance for a bilateral meeting, according to the White House. The meeting holds substantial importance for Modi, who has aimed to elevate India's status as a prominent voice among Global South nations—emerging economies seeking greater global influence. India is one of several countries prioritized for negotiations during this 90-day window, which runs until July. Officials in New Delhi are optimistic that Vance’s visit could pave the way for a quick trade deal that would help avoid the higher proposed tariffs. Discussions will continue under the current 10% baseline duty.

A senior Indian official told Bloomberg News that sector-specific trade talks are scheduled for this week, with the goal of concluding them by the end of May. In parallel, Finance Minister Nirmala Sitharaman will be attending International Monetary Fund meetings in Washington, where trade discussions with top U.S. officials are also expected. Additionally, Prime Minister Modi is hoping to attract investment from Elon Musk, a White House adviser and the CEO of Tesla. Musk, who spoke with Modi last week, has signaled that he may visit India later this year—a development that could push forward Tesla’s ambitions to expand into the Indian market.

Blending Diplomacy with Cultural Outreach: Vance’s itinerary includes more than high-level talks—it will also feature cultural engagement with visits planned to Jaipur and Agra, including the iconic Taj Mahal. This aspect of the trip adds a softer diplomatic touch that the Trump administration has so far not fully utilized.

The Vance family is already drawing attention in India, especially Usha Vance, the first Indian-American Second Lady. Indian media has spotlighted her heritage, which traces back to Andhra Pradesh, and the upcoming visit is expected to deepen interest. According to Milan Vaishnav of the Carnegie Endowment for International Peace, the trip may not only highlight U.S.-India relations but also soften the public image of Vice President Vance, who has been seen as combative—particularly in his critiques of Ukrainian President Zelenskiy and U.S. allies in Europe, as well as controversial remarks about Chinese laborers. The public interest in Usha Vance mirrors the attention that was given to Kamala Harris, another Indian-American former vice president, although Harris never visited India during her term. Vance's visit is being seen as a symbolic "homecoming" that resonates with the pride many Indians feel for the diaspora.

Strengthening Economic and Strategic Ties: The U.S. has long pursued stronger ties with India as part of its strategy to counterbalance China’s growing influence. India, in turn, is eager for increased U.S. investment and enhanced cooperation in defense and technology. However, India’s continued engagement with Russia—especially its ongoing purchases of Russian oil—has been a source of strain in past dealings with the U.S., particularly under President Joe Biden’s administration, which imposed sanctions on Russia after its invasion of Ukraine.

Despite Trump’s tough tariff stance, his relationship with Modi has remained positive. Modi has often aligned his country’s policies with Trump’s priorities. For instance, ahead of Trump’s announcement of reciprocal duties, India had already reduced import taxes on American products such as bourbon and Harley-Davidson motorcycles—an effort to shed its image as the “tariff king,” a term Trump frequently uses.

Following their summit in February, India agreed to buy more U.S. goods—including crude oil, liquefied natural gas, and advanced defense systems—to help narrow its $47.7 billion trade surplus with the U.S. Modi also backed Trump’s immigration policies by cooperating in the repatriation of undocumented Indian nationals from the U.S. During Modi’s White House visit in February, both leaders announced plans to finalize the first phase of a bilateral trade deal by autumn. Vaishnav summed up the Indian government’s approach: “From the prime minister on down, there’s a clear belief—we need to make a deal. Only then can the broader relationship between the two countries fully move forward.”

Disclaimer: This image is taken from Bloomberg.