The White House is reporting progress on a key trade agreement with India, as President Donald Trump and his economic team shift toward more strategic and targeted negotiations with global partners. The efforts come amid growing pressure from business leaders to soften the administration’s broad-based tariffs and focus on building durable trade relationships.
Vice President JD Vance returned from a four-day visit to India this week, where he met with Prime Minister Narendra Modi and senior government officials. Speaking to reporters, Vance emphasized the shared goal of significantly boosting economic ties. “President Trump and Prime Minister Modi announced in February that our countries aim to more than double our bilateral trade to $500 billion by the end of the decade,” he said.
The current U.S.-India trade volume stands at roughly $130 billion, with the U.S. importing about $45 billion more than it exports. Closing that trade deficit is a major component of the Trump administration’s policy, and the potential for tariffs to rise from 10% to 26% on Indian goods remains on the table if a deal isn’t reached. However, optimism appears high. “We were especially excited to formally announce that America and India have officially finalized the terms of reference for the trade negotiation,” Vance added.
In a sign of broader flexibility, the Trump administration has also implemented a 90-day tariff pause for most of America’s trading partners—excluding China. The pause applies a baseline 10% tariff rate while ongoing negotiations play out. White House Press Secretary Karoline Leavitt confirmed that the administration is engaging with nearly three dozen countries this week, seeking to rework trade relationships under more favorable and reciprocal terms.
Meanwhile, economic indicators are showing modest improvements. Egg prices have fallen from their recent highs, and major tech stocks saw a rebound on Tuesday. While unrelated to trade policy, these shifts contribute to a cautiously optimistic economic outlook as the administration works to stabilize international trade dynamics.
On Monday, CEOs from Walmart, Target, and Home Depot met with President Trump to express concerns over tariff policies, particularly how they might affect prices and supply chains. Treasury Secretary Scott Bessent echoed those sentiments in a meeting with investors on Tuesday. “There will be a de-escalation in the very near future,” Bessent said, emphasizing that “no one thinks the current status quo is sustainable.”
The administration’s tone has shifted from confrontation to calculation. While tariffs remain a vital tool in the Trump administration’s economic arsenal, current efforts indicate a move toward targeted enforcement over sweeping application. By building direct agreements with key allies like India, the administration is pursuing an approach that combines strength with strategy—balancing economic assertiveness with long-term global competitiveness.
