US vice president JD Vance has delivered a blunt message on the India-US trade front, branding Prime Minister Narendra Modi a “tough negotiator” who has long leveraged America to his advantage.
Yet, Vance signalled a decisive shift: the US is determined to “rebalance” this trade relationship, with India poised to be among the first nations to clinch a deal that could halt the looming threat of reciprocal tariffs.
Speaking to Fox News, Vance revealed that “good negotiations” are underway, underscoring the urgency and high stakes of the talks amid President Donald Trump’s aggressive tariff policies.
“Modi drives a hard bargain – that’s why we respect him,” Vance said, while making clear that Washington is no longer willing to be taken for granted.
On whether India would be the first trade deal coming through, Vance said: “I don’t know if it’ll be your first deal, I think it would be among the first deals for sure. Pretty soon the President look, we’ve got negotiations with Japan, with Korea, we’ve got negotiations going on with some folks in Europe, and obviously we’ve got a good negotiation going on in India.”
The US administration, under Trump, has imposed sweeping tariffs on countries including India, but a 90-day suspension on these punitive measures (excluding China and Hong Kong) offers a window for breakthrough deals.
Vance laid bare the core US grievance: India’s market remains effectively closed to American farmers and technology, forcing US agriculture and consumers to rely on foreign competitors.
“India has taken advantage of us for a very long time,” he asserted, framing the trade talks as a fight to open Indian markets and create American jobs. The envisioned trade pact promises to unlock India for US technology and farm exports, a deal “Donald Trump loves” because it targets unfair trade, not trade itself.
Behind the scenes, the two nations have finaliaed the terms of reference for a Bilateral Trade Agreement (BTA), aiming to deliver a multi-sector deal by fall 2025. Recent high-level meetings in Washington and New Delhi have made “positive progress,” with both sides eyeing “early mutual wins” on tariffs and market access.
The US seeks cuts on industrial goods, autos, wine, petrochemicals, dairy, and farm produce, while India pushes for concessions on labour-intensive sectors and easier visa regimes.
Vance further emphasised that America is not here to lecture India but to partner with a rising global power.
