As the superpowers United States and China are clashing over tariff issues, the United States is strengthening its ties with India, which is growing as an economic power. This is interpreted as an intention to check China together with India.
On the 22nd (local time), The Wall Street Journal (WSJ) reported in an article titled ‘JD Vance sees India as a partner for the U.S.’ that “India and the U.S. have become closer in recent years as trade partners and defense allies to respond to China’s expansionism.” Last year, the total merchandise trade volume between the U.S. and India reached approximately $129.2 billion (about 185 trillion won), making the two countries major trading partners.
Vice President Vance visited New Delhi, India, the previous day to discuss trade issues with Prime Minister Narendra Modi. Afterward, the two countries finalized the terms of reference (TOR) to establish a mutual trade negotiation roadmap. This is interpreted as an intention by the U.S. to address unfair trade practices and achieve mutual trade balance. Previously, the Trump administration decided to impose a basic tariff of 10% and a reciprocal tariff of 26% on India but postponed it.
The United States' attitude toward India is also well reflected in Vice President Vance's comments. According to WSJ, Vice President Vance remarked in India, “India is vibrant and has limitless potential,” adding, “This stands in stark contrast to many Western countries, where some leaders seem to struggle with self-doubt and fear for the future.”
This stance contrasts sharply with Vice President Vance's aggressive comments when he visited Europe last February. At that time, Vice President Vance questioned “whether the values of Europe are worth defending by the United States” and strongly criticized European leaders for being colored by censorship, election cancellations, and political correctness during his speech at the Munich Security Conference (MSC).
Vice President Vance also did not spare personal praise for Prime Minister Modi. Attending the meeting with his wife Usha Vance, who comes from an Indian immigrant family, and their three children, Vice President Vance noted that his children only like President Trump and Prime Minister Modi among all the world leaders they have met. Vance said, “What’s great about my kids is that they are very honest,” praising Prime Minister Modi.
The United States has been getting closer to India since the Trump administration began. This is thanks to India being the one to extend a hand first. Last February, Prime Minister Modi visited the United States for a summit with President Trump and promised to increase the trade volume between the two countries to $500 billion (about 714 trillion won) by 2030. Subsequently, progress was made in reaching an advanced agreement regarding trade during this meeting.
Comments about lowering trade barriers with India were also made. Vice President Vance stated that the U.S. plans to expand joint production of defense equipment with India, increase energy exports to India, and support India's exploration of foreign natural gas and essential mineral resources. He mentioned, “This administration recognizes that affordable and reliable energy is an essential part of making things,” adding, “This is crucial for the economic independence of both nations.”
However, pressure was also maintained on India to shift its policy toward the U.S. Vice President Vance raised the issue of legislative barriers preventing U.S. corporations from investing in nuclear power plants in India during the meeting. In response, the Indian government indicated that it plans to amend current laws that hold suppliers accountable for accidents during the construction of power plants, according to WSJ. Vice President Vance warned, “If we do not successfully cooperate, the 21st century could be a very dark time for all humanity.”
WSJ reported, “Vance's comments reassured Indian government officials who held expectations that India would gain opportunities from the reciprocal tariffs announced by President Trump as ‘Day of Liberation,’” adding, “Last year, the U.S.-India trade deficit reached approximately $46 billion (about 66 trillion won), but India will face much lower tariff rates compared to China or Vietnam.”