Amidst ongoing trade talks with India, a threatening tone was once again heard from Trump administration's Commerce Secretary Howard Lutnick. He has stated that India needs to be "taught a lesson".
In an interview given to the American media outlet NewsNation, Lutnick said, "India needs to be brought to the right path. If they want to sell their products in the U.S. market, they will have to comply with the U.S. President's directives."
He urged India to show the 'correct response' in light of decisions taken by the American administration. Not only that, but the U.S. Commerce Secretary has also implored New Delhi to open up India's market for American companies and products, while refraining from actions that harm America's interests.
Simultaneously pointing fingers at Brazil and Switzerland, he stated, "These countries must open their markets further and cease activities detrimental to American interests."
Lutnick's statements clearly reflect the U.S. administration's frustration with India's trade policies and geopolitical stance, particularly India's purchase of Russian oil. This is why the Trump administration has imposed a 50 percent tariff on Indian imports, of which 25 percent is levied as punitive duty. Additionally, a 100 percent tariff has recently been imposed on Indian branded and patented medicines.
Commenting on Trump's trade strategy, Lutnick said, "When President Trump makes trade deals, the first deal is always the best. He imposes even tougher conditions in subsequent agreements." The U.S. Commerce Secretary revealed that America has pending trade negotiations with several more countries, among which "India and Brazil pose the biggest challenges."
Lutnick indicated that although problems with India are gradually being resolved, New Delhi will need to continue discussions with President Trump if they wish to sell their products in the U.S. market.
Incidentally, the Centre has recently announced in a statement that constructive discussions have taken place between the Indian delegation, led by Union Commerce Minister Piyush Goyal, and the U.S. delegation regarding the India-U.S. bilateral trade agreement. The trade delegation led by Goyal was on a U.S. visit from the 22nd to the 24th of this month.
The statement mentioned that both parties exchanged views on the potential scope of the bilateral agreement and agreed to continue discussions aimed at swiftly concluding a mutually beneficial trade deal.
During the U.S. visit, the Indian trade delegation led by Goyal met with U.S. Trade Representative Jamieson Greer and U.S. Ambassador to India Sergio Gore.
Additionally, the Indian delegation held multiple meetings with American industrialists and investors to boost trade and investment between New Delhi and Washington. The Centre's statement reported a positive response from these meetings. The U.S. industrial sector and investors expressed confidence in India's economic growth and indicated their desire to expand their commercial activities in the country.
Special Secretary of the Union Ministry of Commerce and Industry and Chief Negotiator. Rajesh Agarwal accompanied Goyal on the U.S. tour. During the U.S. visit, the Union Commerce Minister met with Stephen Schwarzman, Chairman, CEO, and Co-founder of Blackstone. They also discussed the company's investment plans in India.
Furthermore, Goyal met with Raj Subramaniam, President and CEO of FedEx, to discuss investment opportunities in India's rapidly growing logistics sector and potential collaborations.
Recently, at an event in Mumbai, Union Home Minister Amit Shah announced that discussions on the bilateral trade agreement are in the final stages.
