US Vice President JD Vance arrived in New Delhi, India, on Monday, 21 April 2025, for a four-day visit.
During the visit, Vance met Indian Prime Minister Narendra Modi, where the two leaders planned to build on the framework for stronger bilateral relations established in February, when Modi met with Trump at the White House in Washington, DC.
“The visit comes closely on the heels of a positive and successful meeting between President Trump and Prime Minister Modi in Washington earlier this year,” Vance’s office said in a statement.
The US is India’s largest trading partner, and the two nations have been actively negotiating a new trade agreement set to be finalised this year.
While these trade discussions are underway, President Donald Trump announced a 10% baseline tariff on all trade partners, including India, on 2 April 2025. This move established reciprocal tariffs targeting nations with significant trade deficits with the United States.
As such, the Trump Administration has imposed 26% tariffs on Indian goods imported to the US. However, on 9 April 2025, the reciprocal tariffs were postponed for 90 days, excluding the tariffs imposed on China.
Meanwhile, on 21 April 2025, China warned countries against pursuing trade agreements with the US that undermine its interests, which also includes India. In 2024/25, China became India’s second-largest trading partner, with bilateral trade reaching an impressive USD 127.7 billion, second only to the US.
The Trump Administration has significantly increased tariffs on Chinese imports to 145%, sparking a strong response from Beijing, which has imposed retaliatory duties of 125% on US goods.