India US Trade Deal Almost Final, Says JD Vance: Offering a much-needed diplomatic breakthrough amid rising global trade tensions, United States Vice President JD Vance announced that America and India have finalised the terms of reference for a comprehensive trade agreement. The announcement was made during Vance’s ongoing four-day official visit to India, which began on Monday.
Speaking from New Delhi, Vance, who arrived with his wife Usha Vance and their children, confirmed that both nations had successfully outlined the path for structured trade negotiations — a significant step forward following the recent wave of 26% reciprocal tariffs imposed under President Donald Trump’s administration.
The US and India are hard at work on a trade agreement built on shared priorities, and I’m excited to announce that we have officially finalized the Terms of Reference for our trade negotiations.
This agreement is a vital step toward a final deal between our nations. pic.twitter.com/nptw7P7X6J
— Vice President JD Vance (@VP) April 22, 2025
.@VP announces that “America and India have officially finalized the terms of reference for the trade negotiation” between the two countries. pic.twitter.com/Yg46UIPheh
— Rapid Response 47 (@RapidResponse47) April 22, 2025
Trade Talks Progress Despite Tariff War
The announcement comes at a time when global industries were rattled by the new U.S. tariff structure, designed to rebalance what President Trump had termed “decades of unfair trade practices.” India, maintaining its strategic composure, continued negotiations under Prime Minister Narendra Modi’s leadership, emphasizing that the country’s economic interests would not be compromised.
Shortly after the tariffs were imposed, President Trump declared a 90-day pause on enforcement, providing temporary relief for tariff-affected economies and creating space for continued dialogue.
‘A Vital Step Toward Trump-Modi Vision’: Vance
Vice President Vance hailed the agreement as a major stride toward fulfilling the shared economic aspirations of President Trump and Prime Minister Modi. “I believe this is a vital step toward realising President Trump’s and Prime Minister Modi’s vision, because it sets a road map toward a final deal between our nations,” Vance stated, while speaking to media in New Delhi.
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The Vice President also met with Prime Minister Modi earlier this week and described their meeting as both productive and candid. He acknowledged India’s tough stance at the negotiation table, calling PM Modi a “tough negotiator” and highlighting that as a key reason for the deep respect he commands globally.
‘Not Here to Preach, Here to Partner’
In an address in Jaipur, Vance emphasized a significant shift in U.S. diplomatic tone towards India, distancing the current administration from past approaches he described as patronizing.
“Now we’re not here to preach that you do things any one particular way. Too often in the past, Washington approached Prime Minister Modi with an attitude of preaching. Prior administrations saw India as a source of low-cost labour,” Vance remarked.
He underlined that the United States is committed to forging a partnership based on mutual respect and long-term growth, rather than transactional, one-sided expectations.
‘PM Modi’s Popularity Makes Me Jealous’: Vance
In a lighter moment during his Jaipur address, Vance also touched on Prime Minister Modi’s enduring popularity — which continues to be a subject of both admiration and envy on the global stage.
“On the one hand, even as they criticised the Prime Minister’s government, arguably the most popular in the democratic world, and as I told Prime Minister Modi last night, he’s got approval ratings that would make me jealous,” Vance quipped.
With both nations now formally committed to advancing toward a final trade deal, the announcement is expected to bolster India-US strategic ties across sectors including technology, defense, manufacturing, and energy. The trade framework comes at a crucial time, as both countries seek to strengthen economic resilience against global market disruptions and geopolitical uncertainties.
The visit underscores the broader strategic alignment between New Delhi and Washington and serves as yet another indicator of India’s rising profile as a global economic powerhouse under Prime Minister Modi’s leadership.
