A controversial statement from the United States has created a stir amidst a tariff war with India. US Secretary of Commerce Howard Lutnick predicted that India will succumb to pressure despite the current tough stance of the US on tariffs. Speaking about India’s growing oil trade with Russia, the Trump associate argued that India cannot defy the US for long.
Lutnick stated that if India does not change its stance, it may have to bear a heavy 50 percent tariff on its exports to the US. Comparing this to Canada’s previous tariff dispute with Washington, Lutnick said that retaliatory action would only harm smaller economies.
He said this is all a show because it is good to fight with the biggest customer. But in the end, they will demand an agreement with the US. Lutnick further said that within a month or two, India will return to the negotiating table. Moreover, India will apologize and try to reach an agreement with Donald Trump.
He added that it is President Donald Trump who will decide how he wants to maintain relations with Prime Minister Narendra Modi. At the same time, Lutnick issued a strong warning to India and set three conditions to avoid the 50 percent US tariff. He warned that India would have to choose between aligning with the US or strengthening ties with Russia and China through BRICS.
Lutnick said that India must stop buying Russian oil and being a part of BRICS. He said that if India wants to be a bridge between Russia and China, then be it! But support the dollar, the US or its biggest customer, otherwise, pay a 50 percent tariff. He said, let’s see how long it lasts. Emphasizing the economic dominance of the US, Lutnick said, we are the world’s consumers. This is our 30 trillion US dollar economy. After all, the customer is always right.
Commenting on Trump’s remarks on India and China, Lutnick said that India has increased its oil imports from Russia from 2 percent to over 40 percent after the start of the Ukraine war. He said that before the Russian conflict, India bought less than 2 percent of oil from Russia and now they are buying more than 40 percent. They are doing this because oil has been sanctioned, so it is actually very cheap because the Russians are looking for people to buy it. And so the Indians have just decided, let’s buy it cheap and make a lot of money.
Lutnick said that India will have to decide which side it wants to be on. When asked if the US is ready to negotiate with India, he said that we are always ready to negotiate. He further added that the Chinese sell to us, the Indians sell to us. They will not be able to sell to each other. We are the world’s consumers. People have to remember that our 30 trillion US dollar economy is the only consumer in the world. Therefore, in the end, they will have to come back to the customer, because we all know that the customer is always right.
Earlier this year, relations between India and the US soured when Donald Trump imposed a heavy 50 percent tariff in response to New Delhi’s continued purchase of Russian oil. Several members of his cabinet strongly criticized India’s policy. New Delhi condemned the move, calling it unfair and imprudent, and questioned why Washington targeted India alone, leaving China, the largest buyer of Russian crude oil, untouched.