Vance in India: Trumping crisis threatens for Trump tariffs!

Vance in India: Trumping crisis threatens for Trump tariffs!

New Delhi, Indien - On April 21, 2025, US Vice President JD Vance visited the Indian Prime Minister Narendra Modi in New Delhi. At this meeting, which took place against the background of threatening US tariffs to Indian goods, Modi Vances presented children with Pfeauen feathers. Vance's visit comes in a tense trade situation because President Donald Trump threatened to increase tariffs to Indian products in order to assert points of view in a global trade war. There is currently a base of 10% on Indian exports to the USA, while the United States raises an average of 26% on Indian goods, but which are exposed to 90 days until July 8, 2025, with the exception of China.

The United States are India's largest trading partners, with a bilateral trade volume of $ 129.2 billion in 2024. India's excess export in the USA was $ 87.4 billion, while US exports to India were $ 41.8 billion. Despite these strong trade relationships, India's concerns about a possible weakening of the agricultural customs protection mechanisms during the ongoing negotiations.

protests and political challenges

During Vances Visit, there were protests by Indian farmers who demonstrated against the US policy and the government of Modi. The concerns of farmers relate in particular to the loss of protective measures for their products in international competition. The Indian government is under pressure to find a balance between external trade interests and the protection of local agricultural economy in the trade negotiations.

Finance Minister Nirmala Sitharaman indicated that a first part of a trade agreement could be ready by the end of 2025. Negotiations focus on numerous topics, including the market opening, tariff cuts and various non -tariffs. In this regard, the new "Terms of Reference", which were announced during the meeting between Vance and Modi, should also serve as guidelines for the negotiations.

commercial barriers and strategic initiatives

The "Terms of Reference" describe the American goals to increase the opening of the market and reduce the trade deficits. The United States' trade deficit with India was $ 45.7 billion in 2024, which represents an increase of 5.1% compared to 2023. India's average customs rate on agricultural products is 39%, while in the United States is only 5%. There are also restrictive regulations that make access to certain markets more difficult.

• Average customs for agricultural goods: USA 5%, India 39%
• ethanol import restrictions: USA 2.5%, India prohibits imports
• Access to the milk market: Open markets in the USA, limited access in India
• Textilzölle: USA 5-7%, India strives to reduce 0% of

In addition, the USA introduced new tariffs of 10% to all countries and higher sentences for countries with significant trade deficits, which could have a negative impact on the dialogue between the two countries. This is part of Donald Trump's "America First Trade Policy", which aims to promote jobs in the United States and boost economic growth.

future prospects for trade

India intends to increase bilateral trade with the United States to $ 500 billion by 2030. Both countries see opportunities in improved cooperation in areas such as technology and military. For the United States, negotiations also offer the opportunity to strengthen their geopolitical partnership with India that is considered a strategic partner in the region.

Al Jazera reports about the concerns regarding India, while Uttr The initiatives for the trade agreement. For technical insights and the importance of technology in agriculture Farmonaut Agriculture.