The results of the talks between the two leaders are particularly important for the US because they have basically paved the way for both sides to simultaneously solve two issues being raised, which is to increase bilateral trade turnover by 2030 to 500 billion USD, which is double the current level and prevent countervailing taxes of US President Donald Trump.
Last February, Mr. Modi was invited by Mr. Trump shortly after returning to power in the United States. During Mr. Trump's previous US President, between Mr. Modi and Mr. Trump had a special personal relationship. This personal relationship was followed by them as soon as Mr. Trump was elected the US president and returned to power in the United States. During that American trip of Mr. Modi, he and Mr. Trump together set the goal to double the aforementioned trade exchange turnover.
When deciding to impose countervailing tariffs on all US economic and trade partners, Mr. Trump did not rule out India, but in fact, the US and India had earlier launched the bilateral trade negotiation process.
India was publicly favored by the new US administration thanks to the friendship between Mr. Trump and Mr. Modi, but it could also be because Mr. Vance's wife is an Indian-American.
According to Mr. Vance, the new trade agreement between the US and India consists of 3 centralized areas of defense, energy and technology. India will buy more than American oil and gas. The two sides will cooperate in manufacturing modern weapons and military weapons. With the new trade agreement, India avoided Mr. Trump's reciprocal tax but was tied closer by the United States. The whole thing also makes the relationship between the US and India more especially strange.
