US Commerce Secretary Howard Lutnick ignited a fiery trade dispute with India, accusing the nation of touting its 1.4 billion population while refusing to import even a single bushel of American corn due to high tariffs. In a sharp-tongued interview on Saturday, Lutnick warned that India must lower its trade barriers or face significant challenges in accessing the US market, the world’s largest consumer economy.
The comments came in response to questions about whether the US risks straining ties with key allies like India, Canada, and Brazil through its aggressive tariff policies. Lutnick dismissed the notion, arguing that these relationships are lopsided. “India sells everything to us but blocks our products with tariffs,” he said, echoing President Donald Trump’s call for “fair and reciprocal trade.” He pointedly questioned, “Why won’t 1.4 billion people buy one bushel of US corn? It’s unfair that they flood our markets while shielding theirs.”
Lutnick’s remarks spotlight the Trump administration’s frustration with India’s protectionist policies, particularly its high tariffs on agricultural imports like corn, which can exceed 60%. The US, a leading corn exporter, sees India’s 1.4 billion-strong market as a missed opportunity, with trade imbalances fueling tensions. In 2024, the US trade deficit with India reached $32 billion, driven by Indian exports like pharmaceuticals, textiles, and IT services, while US agricultural goods face steep barriers.
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The situation escalated with the US imposing 50% tariffs on Indian goods, including a 25% levy tied to India’s purchases of Russian crude oil, which now constitute nearly 35% of its oil imports. India has called these measures “unfair, unjustified, and unreasonable,” defending its energy choices as driven by national interest and cost considerations amid global market volatility. New Delhi argues that its reliance on affordable Russian oil stabilizes domestic prices and reduces dependence on costlier suppliers.
Lutnick emphasized that the US aims to “correct years of trade imbalances” through reciprocal tariffs, a cornerstone of Trump’s economic agenda. “Either treat us the way we treat you, or you’ll find it tough to do business with the world’s greatest consumer,” he warned. This hardline stance comes as the US gears up for midterm elections, with trade deficits framed as a national priority.
India, however, is pushing back. It has imposed retaliatory tariffs on US goods like motorcycles and almonds and is seeking resolution through WTO negotiations. Indian officials stress the need for balanced trade that supports both nations’ economies, particularly in areas like technology and defense, where collaboration has deepened through frameworks like the Quad. Analysts warn that a prolonged trade war could disrupt global supply chains, raise consumer prices, and strain diplomatic ties, despite shared strategic interests.
As tensions simmer, India’s upcoming trade talks with the US will be critical. With both sides digging in, the path to fair and reciprocal trade remains fraught, testing the resilience of one of the world’s most vital bilateral relationships.
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