US Warns India: Trade Will Be Difficult Without Tariff Reduction

The United States has issued a stern warning to India, signalling that doing business with the US will become difficult unless New Delhi reduces its tariffs. The remarks were made by US Commerce Secretary Howard Lutnik, who criticised India for restricting imports while freely selling goods to the American market.

According to Indian news agency PTI, reported by NDTV on Monday, 15 September, Lutnik highlighted India’s reluctance to purchase even small quantities of American maize, despite its 1.4 billion-strong population.

In a recent interview, Lutnik was asked whether imposing tariffs on key allies like India, Canada, and Brazil risks damaging valuable relationships. He responded: “The relationship has become one-sided. They are selling to us, but their market is closed to us.”

He added: “They (India) are blocking our access to their economy while selling everything to us. Meanwhile, our market is fully open to them.”

Lutnik questioned why a country of 1.4 billion people could not even buy one bushel of American maize. He remarked: “Doesn’t it bother you that they sell everything to us but refuse to buy even maize? They have imposed tariffs on nearly everything.”

Referring to US President Donald Trump, Lutnik said: “Reduce your tariffs. Use us as we use you, or else doing business with the world’s largest consumer will be difficult.”

He further warned: “Years of unfair practices need correction. We will impose reciprocal tariffs until this issue is resolved. This is the President’s model — accept it, or trading with the US will become challenging.

The Trump administration has already imposed 50 percent tariffs on certain Indian goods, including a 25 percent levy on oil imports from Russia. The US contends that India’s discounted purchases of Russian oil effectively support Moscow’s ongoing aggression in Ukraine.

Key Statements by Howard Lutnik

Lutnik’s statements underline the growing tension in US-India trade relations, emphasising that tariff reductions are crucial to maintain a smooth commercial partnership with the United States.