Jaipur: The United States and India have finalized terms for a trade deal, US Vice President JD Vance announced Tuesday, signaling a major shift in bilateral trade relations amid global anxiety over the return of reciprocal tariffs.
Vance, speaking at a policy event in Jaipur a day after his meeting with Prime Minister Narendra Modi, emphasized that Washington is seeking trade partners committed to fairness, mutual respect for labor, and shared national priorities.
“Our administration seeks trade partners on the basis of fairness and of shared national interests,” Vance said. “We want to build relationships with our foreign partners who respect their workers, who do not suppress their wages to boost exports, but respect the value of their labor.”
The announcement marks a rare moment of clarity in what many economists see as an uncertain global trade environment, especially as Trump’s rhetoric around ‘rebalancing’ trade deals has sparked concerns among US allies and trading partners.
Without disclosing the full details of the agreement, Vance outlined key principles guiding the new framework.
“We want partners that are committed to working with America to build things—not just allowing themselves to become a conduit for trade and shipping others’ goods,” he said. “And, finally, we want to partner with people and countries who recognize the historic nature of the moment we are in. Of the need to come together and build something completely new—a system of global trade that is balanced, one that is open and one that is stable and fair.”
While reiterating that US partners need not mirror American policy prescriptions, Vance said that any successful trade relationship must rest on shared goals. In India’s case, those goals stretch beyond economics.
“These common goals with India,” he said, “are related to both economics and national security.”
The trade deal is expected to deepen cooperation between the world’s two largest democracies at a time when strategic alignments are shifting in the Indo-Pacific. Observers say the agreement could serve as a bulwark against China’s expanding influence and bolster joint efforts in areas ranging from critical minerals to defense production.
The White House is expected to release a formal statement later this week.
