US will sort out Trade Deal with India: Howard Lutnick
Following initial indications of reduced trade friction between America and India, US Commerce Secretary Howard Lutnick announced Thursday that the Trump administration plans to resolve a trade agreement with India, contingent upon India ceasing its purchases of Russian oil.
"We're going to work things out with India. India fundamentally needs to open up their markets and must stop purchasing Russian oil," Lutnick stated during a conversation with American business news network CNBC. This was his response when asked about which trade negotiations held his primary focus.
"People forget that India wasn't purchasing Russian oil prior to the conflict between Russia and Ukraine only 1 percent of their oil came from Russia. Now, 40 percent of their oil originates from Russia because we've imposed sanctions on it allowing them to purchase it at $7-10 per barrel below the market price. They're acquiring it, processing it, and subsequently selling it globally while earning substantial profits. The president (Trump) called this unacceptable and demanded they cease these activities. I believe we'll resolve the India situation once they discontinue buying Russian oil," Lutnick continues.
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The US Commerce Secretary's remarks follow shortly after Trump announced on social media that India and America are pursuing negotiations to resolve trade obstacles.
In response to Trump's statement, Prime Minister Narendra Modi indicated that both nations "will collaborate to ensure a brighter, more prosperous future.
These social media exchanges suggest a moderate reduction in tensions between Washington and New Delhi, which had intensified partly because trade agreement discussions between the nations had stalled and India's substantial Russian crude purchases had become a significant source of friction for the Trump administration. In the previous month, Trump imposed an extra 25 percent tariff on Indian products—in addition to the previously announced 25 percent tariffs—as punishment for purchasing Russian oil.
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Trump shared on Truth Social that he was happy to reveal that India and the United States are moving forward with discussions to resolve trade obstacles between the two countries. He expressed anticipation about conversing with Prime Minister Modi, whom he considers a close friend, in the coming weeks. Trump stated his confidence that both nations would reach a mutually beneficial agreement.
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In response to Trump's message, Modi replied on X that India and the US maintain a strong friendship and are natural allies. He expressed optimism that their trade discussions would help realize the vast opportunities within the India-US relationship. Modi mentioned that their respective teams are working toward finalizing these conversations as soon as possible. He also shared his eagerness to speak with President Trump, emphasizing their joint commitment to creating a brighter and more prosperous future for citizens of both nations.