US Trade Threats: Trump Aide Urges India to Open Markets, Halt Actions Against US Interests

In a sharp warning to India, US Commerce Secretary Howard Lutnick stated that New Delhi “needs fixing” to safeguard access to American consumers, emphasizing that India must align with the US administration’s trade expectations.

During an interview with NewsNation, Lutnick singled out India and Brazil, asserting that these nations need to open their markets and refrain from actions that negatively impact US interests. “We have a bunch of countries to fix, like Switzerland, Brazil, India. These countries need to react correctly to America,” Lutnick said.

India currently faces steep US tariffs, including levies up to 50% on certain imports and a recent 100% duty on branded pharmaceutical products, a move that significantly affects Indian companies that rely on the US market for nearly 40% of their revenues. The 50% tariffs also reflect a 25% penalty linked to India’s continued purchase of Russian oil.

Lutnick emphasized, “If you want to sell to US consumers, you’ve got to play ball with the President of the United States.” He added that under President Trump’s approach to deals, each subsequent agreement often comes at a higher cost.

Amid these tensions, India and the US have resumed trade negotiations. A delegation led by Commerce and Industry Minister Piyush Goyal visited Washington from September 22 to 24, meeting US Trade Representative Ambassador Jamieson Greer and Ambassador-designate to India Sergio Gor to discuss a potential agreement. The Indian Commerce Ministry described the discussions as “productive,” with both sides agreeing to continue engagement for a mutually beneficial trade deal.

Indian officials also engaged with US businesses and investors, highlighting India’s growth potential and commitment to expanding commercial activity. Meanwhile, External Affairs Minister S. Jaishankar reiterated that India “will always maintain its freedom of choice” while advocating for de-risking global trade and supply chains amid tariffs, technology restrictions, and coercive practices.

The ongoing negotiations and warnings from the US underscore the high stakes in US-India trade relations as both sides navigate tariffs, market access, and strategic economic interests.