In light of India’s ongoing purchase of oil from Russia, the United States has imposed additional tariffs, increasing them up to 50 percent. US Commerce Secretary Howard Lutnick commented on this issue, criticizing major trading partners, specifically India and Brazil. He stated that these nations should adjust their market practices to align with American interests. He urged them to ‘React Correctly’ when dealing with the US.
Lutnick highlighted the need to ‘fix’ countries such as Switzerland, Brazil, and India, emphasizing the necessity for these nations to open their markets and avoid actions that negatively affect America.
Earlier remarks from Lutnick had downplayed India’s resistance in trade talks, viewing it as largely symbolic. He predicted India’s return to negotiations within a couple of months. He also mentioned that Indian trade companies would likely pressure Prime Minister Narendra Modi’s government to come to an agreement with the US.
The US official also criticized India’s large-scale acquisition of cheap crude oil from Russia since the Ukraine war started, labeling it as wrong and ridiculous. He stressed that India needs to decide its allegiances.
Leveraging economic leverage, the US official reminded these countries that the US remains the largest consumer market globally. He stated, “We are the consumers of the world. People have to remember, our $30 trillion economy is the world’s consumer. Therefore, they have to return to the customer because we all know that in the end, the customer is always right.” These remarks coincide with ongoing trade negotiations between the US and India and the recent imposition of additional tariffs by the US on India.