A recent statement from a US official has caused controversy amidst the ongoing trade disputes with India. US Commerce Secretary Howard Lutnick expressed his belief that India will yield to the United States’ demands concerning tariffs. This statement comes in the wake of India’s increased oil trade with Russia. Lutnick, a former associate of Donald Trump, suggested that India’s defiance of the US would be short-lived.
Lutnick warned that India’s exports to the US could face a 50% tariff if it does not alter its current trade practices. He compared the situation to a previous tariff dispute between the US and Canada, stating that such retaliatory measures primarily hurt smaller economies.
According to Lutnick, India’s current actions are merely a pretense, and the nation will eventually seek an agreement with the US. He predicted that India would return to negotiations within a couple of months, offering an apology and seeking a resolution with Donald Trump.
Lutnick indicated that President Trump would determine the future of relations with Indian Prime Minister Narendra Modi. Furthermore, he issued a strong warning to India, laying out three conditions for avoiding the 50% US tariff. India would be required to choose between aligning with the US or strengthening ties with Russia and China through the BRICS alliance.
Lutnick explicitly stated that India must cease its Russian oil purchases and withdraw from BRICS. He asserted that while India could choose to act as a bridge between Russia and China, it must ultimately support the US dollar, the United States, and its largest customer, or face the tariff consequences. Lutnick emphasized the dominance of the US economy, stating that the US is the world’s consumer, supported by a $30 trillion economy, and that the customer always prevails.
Addressing Trump’s criticisms of India and China, Lutnick noted that India had significantly increased its oil imports from Russia after the Ukraine war, from less than 2% to over 40%. He explained that this shift was due to sanctions on Russian oil, making it cheaper, leading India to capitalize on the opportunity.
Lutnick concluded that India would need to decide which side it wants to be on. When asked about the US’s willingness to negotiate, he confirmed the US’s constant readiness. Lutnick reiterated that both China and India rely on US consumption, emphasizing that the US’s $30 trillion economy is the global consumer, and therefore, both nations would eventually return to the negotiating table because the customer is always right.
The tensions between India and the US escalated earlier this year when Donald Trump imposed a 50% tariff in response to India’s continued purchase of Russian oil. Trump’s cabinet members have strongly condemned India’s actions. India criticized the decision as unfair and questioned why Washington targeted India while sparing China, a larger buyer of Russian crude oil.