In a bold diplomatic moment, Vice President JD Vance said the U.S. and India have officially finalized the “terms of reference” for a future trade agreement, marking a critical step toward achieving President Trump and Prime Minister Modi’s shared vision of doubling bilateral trade to $500 billion by 2030.
“If we fail to work together, the 21st century could be a very dark time for all of humanity,” Vance warned in a speech Tuesday at the Rajasthan International Centre.
A New Kind of Trade War: AI, Energy, Manufacturing
Vance defended the Trump administration’s global tariff agenda — calling it not a return to protectionism, but a “rebalancing of global trade” that aims to restore industrial power to the U.S. through new strategic alliances, particularly with India.
“Critics say Trump is starting trade wars for the past. Nothing could be further from the truth,” Vance said. “He wants to build a future worth having — with friends like India.”
The new roadmap outlines cooperation on:
- Durable supply chains
- Manufacturing expansion
- Energy independence
- Artificial intelligence and defense tech
Energy = AI
In a critical strategic pitch, Vance emphasized that there’s no AI future without energy dominance, offering to expand U.S. exports of natural gas, nuclear support, and critical minerals to power India’s industrial and tech ambitions.
“We want to help India explore its offshore gas, scale its nuclear grid, and build an AI future — one built on energy security.”
Vance called the U.S.-India alliance “essential for peace and prosperity in the Indo-Pacific”, indirectly referencing China as the major competitor.
“The competition extends well beyond cheap consumer goods and into munitions, infrastructure, and cutting-edge tech,” Vance said. “If we don’t keep pace, the consequences will be dire.”
Family Diplomacy & Modi’s Tough Bargaining
Vance — joined by his wife Usha and their three children — described a “warm and productive” meeting with Prime Minister Modi at his Delhi residence, adding that his kids had “only ever bonded” with two world leaders: Donald Trump and Narendra Modi.
“Children are brutally honest. Our kids like him — I do too,” Vance said. “It’s a great foundation for the future.”
He praised Modi as a “tough negotiator,” while blaming past U.S. leaders for failing to fight for American workers:
“We respect Modi for fighting for Indian industry. But we blame our own for not doing the same.”
Formal trade talks are expected to accelerate in Q2, with U.S. negotiators aiming for a framework deal before year-end.
“This is a win-win partnership,” Vance said. “One that could define the 21st century.”
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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