US Vice-President JD Vance has publicly described Prime Minister Narendra Modi as a "tough negotiator" in the ongoing trade talks between India and the United States, highlighting the high stakes and urgency of the negotiations.

Vance emphasised that India, long accused by some US officials of leveraging trade advantages, is now at the forefront of efforts to secure a new bilateral trade agreement to avert the imposition of steep reciprocal tariffs recently announced by President Donald Trump.

President Trump’s administration imposed sweeping tariffs on several countries, including India, with a baseline 10% tariff and additional 25% duties on steel, aluminium, and auto components. However, most of these tariffs-except those on China and Hong Kong-are currently suspended for 90 days, providing a window for countries to negotiate trade deals with the US. India is among approximately 75 countries seeking to secure such agreements before the suspension expires on July 9, 2025.

Vance stated that "good negotiations" are underway with India, and he expects India to be among the first countries to finalise a deal, though he stopped short of confirming it would be the very first. He made clear that the US aims to "rebalance" the trade relationship, addressing what he called the effective closure of Indian markets to American agricultural products and technology. The US seeks greater access for its farmers and tech companies, while India is pushing for concessions on labor-intensive sectors and easier visa regimes.

Behind the scenes, both nations have finalised the terms of reference for a Bilateral Trade Agreement (BTA), targeting a multi-sector deal by fall 2025. Recent high-level meetings in Washington and New Delhi have made "positive progress," with both sides aiming for early mutual wins, especially on tariffs and market access. The US is particularly focused on reducing Indian tariffs on industrial goods, autos, wine, petrochemicals, dairy, and farm produce, while India seeks improved access for its exports and professionals.

Vance underscored that the US is not against trade itself, but against what it perceives as "unfair trade," and insisted that the new deal would open India to American technology and agricultural products, creating more American jobs and benefiting both economies. He also stressed that the US seeks partnership with India as a rising global power, not confrontation.

The India-US trade negotiations are progressing rapidly, with both sides motivated to reach an agreement that would prevent the imposition of new tariffs and deepen economic ties. The outcome is expected to have significant implications for bilateral trade, market access, and the broader strategic partnership between the two countries.

Agencies