A recent statement by a US official has sparked controversy amid the ongoing trade disputes between the US and India. US Commerce Secretary Howard Lutnick predicted that India will concede to US demands concerning tariffs. This comes as India has increased its oil trade with Russia. Lutnick, a former associate of Donald Trump, suggested that India’s resistance to the US would be short-lived.
Lutnick warned that India’s exports to the US could face a 50% tariff if it does not change its current trade practices. He referenced a previous tariff dispute between the US and Canada, highlighting that such retaliatory actions primarily impact smaller economies.
According to Lutnick, India’s current actions are a mere performance, and the nation will eventually seek an agreement with the US. He predicted that India would be back at the negotiating table within a couple of months, offering an apology and looking to resolve the situation with Donald Trump.
Lutnick indicated that President Trump would determine the future of relations with Indian Prime Minister Narendra Modi. He also issued a strong warning to India, laying out three conditions for avoiding the 50% US tariff. These conditions include aligning with the US or strengthening ties with Russia and China through BRICS.
Lutnick explicitly stated that India must stop purchasing Russian oil and withdraw from BRICS. He asserted that India can choose to be a bridge between Russia and China, but it must support the US dollar, the United States, and its biggest customer, or face the tariff consequences. Lutnick stressed the dominance of the US economy, stating that the US is the world’s consumer, backed by a $30 trillion economy, and the customer always prevails.
Regarding Trump’s criticisms of India and China, Lutnick noted that India had significantly increased its oil imports from Russia after the Ukraine war, from under 2% to over 40%. He explained that this change was due to sanctions on Russian oil, making it cheaper, and India seized the opportunity.
Lutnick concluded that India would have 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 stated that both China and India depend on US consumption and emphasized that the US’s $30 trillion economy is the global consumer, so both nations will eventually return to the negotiating table because the customer always holds the advantage.
Tensions between India and the US escalated earlier this year when Donald Trump imposed a 50% tariff due to India’s ongoing purchases of Russian oil. Various members of Trump’s cabinet strongly criticized India’s actions. India has called the decision unfair and questioned why Washington targeted India while not China, a larger buyer of Russian crude oil.