Chatting with JD Vance: New Tariffs and Modi Talks
Vance praises Modi as a 'skilled negotiator', hints at imminent trade agreement with India.
Vice-President JD Vance is spreading the word about President Trump's new tariffs and ongoing talks with Prime Minister Narendra Modi of India.
In a recent chat with Fox News, Vance called Modi a "tough negotiator" but emphasized that the relationship between the two nations needed to be rebalanced. He suggested that India had long taken advantage of the United States in trade, claiming that a deal with Delhi could be in the cards to avoid new tariffs.
Trump announced a wave of reciprocal tariffs on April 2, targeting countries including India and China, but the administration paused implementation for 90 days, except for China and Hong Kong, on April 9. Although the pause is in effect, a 10% baseline tariff remains, along with steep duties of 25% on steel, aluminium, and auto components.
The trade imbalance between American farmers and the Indian market is a significant concern, according to Vance. Despite producing high-quality agricultural goods, American farmers continue to face closed markets in India. A potential US-India trade pact, as hinted by Vance, would open up India to American technology, agriculture, and create more American jobs.
Despite the current pause, negotiations for a bilateral trade deal have been ongoing since Modi's visit to Washington in February. The agreement will address tariffs, market access, and trade barriers. Emphasizing the deal's importance, Vance affirmed that Trump is not against trade, but rather unfair trade that benefits foreign competitors at the expense of American workers and producers. In his perspective, the Indians have long taken advantage of the U.S.A.
A Look Ahead
The U.S. Trade Representative and India’s Ministry of Commerce have agreed on the Terms of Reference for negotiations, focusing on reciprocal market access and addressing trade imbalances. The anticipated BTA aims to double bilateral trade to $500 billion by 2030, with key areas of discussion including industrial goods, EVs, agriculture, and defense collaboration in broader strategic talks. Negotiations will continue, with sectoral virtual talks planned, and the hope is to conclude the first phase of the agreement by fall 2025.
Vance believes that such a deal would be a win-win for both nations, benefiting American technology and agriculture sectors while also creating jobs. However, the negotiations remain complex, with India seeking exemptions for labor-intensive industries, and both nations aiming to address serious issues of lack of reciprocity in trade.
- Vice-President JD Vance highlighted the significance of President Trump's new tariffs and ongoing talks with Prime Minister Narendra Modi of India, emphasizing the need to rebalance the relationship between the two nations.
- In a recent chat with Fox News, Vance called Modi a "tough negotiator" and hinted at a potential US-India trade pact to avoid new tariffs, claiming that India had long taken advantage of the United States in trade.
- In his perspective, Vance affirmed that Trump is not against trade but rather unfair trade that benefits foreign competitors at the expense of American workers and producers.
- The anticipated BTA (Binary Trade Agreement) aims to double bilateral trade to $500 billion by 2030, with key areas of discussion including industrial goods, EVs, agriculture, and defense collaboration.
- Vance believes that such a deal would be a win-win for both nations, benefiting American technology and agriculture sectors while also creating jobs, but the negotiations remain complex due to India seeking exemptions for labor-intensive industries and addressing serious issues of lack of reciprocity in trade.
