JD Vance Lands In India To Navigate Trump Tariff Tensions And Forge Deals: What's In Store?

U.S. Vice President J.D. Vance kicked off his four-day tour of India on Monday, as the two countries attempt to negotiate a trade deal.

On April 2, U.S. President Donald Trump imposed 26% tariffs on imports from India, but paused them about a week later, alongside a freeze on reciprocal levies on most other countries.

Vance is scheduled to meet with Prime Minister Narendra Modi in the evening at New Delhi, according to the White House.

The vice president’s visit would “provide an opportunity for both sides to review the progress in bilateral relations,” the White House reportedly said.

The trade talks are of great importance to India as the U.S. is the country’s biggest trade partner. The U.S. goods trade deficit with India increased 5.4% to $45.7 billion in 2024 compared to the previous year.

India has held talks to reduce its trade deficit by purchasing more energy products and military equipment from the U.S.

Before the reciprocal tariffs, India had already reduced import taxes on bourbon whiskey and motorcycles following Modi’s visit to Washington, D.C. Trump had suggested that India was considering purchasing F-35 fighter jets. Still, a deal has not been finalized yet.

Bloomberg reported, citing an Indian official, that sector-specific trade talks will take place this week, with the goal of completing them by the end of May.

According to a Reuters report, India is also considering cutting import levies on liquefied natural gas from the U.S.

The U.S. is also asking India to cut levies on agricultural imports at a time when China’s retaliatory tariffs on U.S. products have impacted export demand for U.S. crops, such as corn and soybeans.

However, this is a sensitive issue for the Indian government, as the heavily subsidized sector employs more than 40% of the country’s workforce.

Vance would be visiting with his Indian–origin wife, Usha Vance, and three children. The vice president's family is expected to fly out of India on Thursday.

The iShares MSCI India ETF (INDA) exchange-traded fund has fallen 2.1% year-to-date (YTD).

Also See: Trump Tariffs May Trigger Brief Artificial Economic Boost Before Summer Slowdown, Warns Fed's Goolsbee

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