US Commerce Secretary Howard Lutnick predicted that India will eventually give in to US pressure over tariffs, despite its current tough stance. Speaking about India’s growing oil trade with Russia, he argued that New Delhi cannot afford to defy Washington for long.
Lutnick said that if India does not change course, it may face steep 50% tariffs on its exports to the US. Drawing parallels with Canada’s earlier tariff dispute with Washington, Lutnick said retaliatory measures only hurt smaller economies.
advertisement
“It’s all bravado because it feels good to fight with the biggest client. But eventually, businesses will demand a deal with America,” he said.
Lutnick added that within “a month or two,” India will likely come back to the negotiating table.
“So I think, yes, in a month or two months, I think India is going to be at the table and they’re going to say they’re sorry and they’re going to try to make a deal with Donald Trump,” he said.
“And it will be on Donald Trump’s desk how he wants to deal with (Narendra) Modi, and we leave that to him. That’s why he’s the President,” he added.
Issuing a sharp warning to India, he laid out three conditions to escape the US’s 50% tariffs. He warned that India must choose between aligning with the US or deepening ties with Russia and China through BRICS.
“India doesn’t want to open their market. Stop buying Russian oil. And stop being a part of BRICS. If you want to be the bridge between Russia and Chinago be it! But either support the dollar, support the United States of Americasupport your biggest clientor pay 50% tariffs. And let’s see how long this lasts,” Lutnick said.
Emphasising America’s economic dominance, Lutnick said, “We are the consumer of the world. It’s our $30 trillion economy. Eventually, the customer is always right.”
ON TRUMP’S DIG AT INDIA, CHINA
Lutnick was also asked about Trump’s Truth Social post where the American President wrote, “Looks like we’ve lost India and Russia to deepest, darkest, China. May they have a long and prosperous future together! President Donald J. Trump.”
“Before the Russian conflict, the Indian bought less than 2% oil from Russia nd now they are buying more than 40%. What they’re doing is, because the oil is sanctioned, it’s really, really cheap because the Russians are trying to find people to buy it. And so the Indians have just decided, ‘Ah, the heck with it. Let’s buy it cheap and make a ton of money’,” he said.
Describing this as “just plain wrong” and “ridiculous”, Lutnick said India needs to decide “which side it wants to be on.”
When asked if the US is willing to negotiate with India, he said, “We’re always willing to talk.”
He went on to say that “the Chinese sell to us. The Indians sell to us. They’re not going to be able to sell to each other. We are the consumer of the world. People have to remember, it’s our $30 trillion economy that is the consumer of the world. So eventually they all have to come back to the customer, because we all know eventually the customer is always right.”
He said that India doesn’t yet want to open its market, stop buying Russian oil and stop being a part of the BRICS.
“They’re the vowel between Russia and China (in BRICS). If that’s who you want to be, go be it. But either support the dollar, support the United States of America, support your biggest client, who is the American consumer, or I guess you’re going to pay a 50% tariff. And let’s see how long this lasts,” he said.
India-US ties soured earlier this year after Trump imposed a steep 50% tariff in response to New Delhi’s continued purchase of Russian oil. Several members of his Cabinet followed up with sharp attacks on India’s policy. New Delhi has slammed the move as “unfair, unjustified and unreasonable,” questioning why Washington singled out India while sparing China, the biggest buyer of Russian crude. Indian officials insist that its energy imports are guided by national interest and market realities.
– Ends