Howard Lutnick, the U.S. Commerce Secretary, recently said things that caused a stir when he said that India would have to go back to trade talks and “apologise” within two months. Lutnick told Bloomberg that the U.S. might put high tariffs on Indian goods, up to 50 percent, if India keeps its current attitude on trade and energy imports.
“India is going to be at the table in a month or two, say they’re sorry, and try to make a deal with Donald Trump,” he said with a straight face. His words come at a time when the Trump administration is getting angrier about India’s relationships with Russia and the BRICS countries.
US Still Delusional?
Howard Lutnick called India’s purchase of Russian crude oil “ridiculous” and told New Delhi to think again about its options. He said that India needs to decide if it wants to align itself with the U.S. customer market or keep working together with Russia and China to make the BRICS group stronger.
The U.S. position shows that it is uncomfortable with India’s attempt to balance its relationships with the West and other global groups.
New Delhi’s Firm Answer
Nirmala Sitharaman, the Indian Finance Minister, has said again that New Delhi will continue to do what is best for the country’s economy. She said that the amount of crude oil that is imported is based on the market and how much it costs, not on government pressure.
India has always supported its independent foreign policy, saying that strong ties with the U.S. don’t mean that India can’t work with Russia or join BRICS.
Consumer Confidence vs. Strategic Resistance: India-U.S. Trade at Crossroads
The fact that Lutnick said, “The customer is always right,” shows how confident Americans are in their consumer-driven economy. Lutnick suggested that India could be cut off from the rest of the world if it doesn’t agree with U.S. trade rules by stressing how big the U.S. market is.
India doesn’t seem ready to give in to U.S. pressure right now. It’s still not clear if Lutnick’s prediction of an apology within two months will come true, but one thing is for sure: the next few weeks will test how strong and resilient trade ties between India and the United States are.
