US Commerce Secretary Howard Lutnick has reiterated that India must halt purchases of Russian oil if it seeks smoother trade ties with Washington, even as both countries signaled optimism about resolving their current differences.
Speaking to CNBC, Lutnick said India remained a key focus in trade talks but added, “Well, we're going to sort out India… once they stop buying Russian oil.” His remarks came amid ongoing negotiations over tariffs and a possible trade deal.
His remarks come in the same vein as comments he made last week in a Bloomberg interview, when he predicted that India would soon engage in trade negotiations under US pressure. Lutnick said, “In a month or two months, I think India is going to be at the table, and they're going to say they're sorry, and they're going to try to make a deal with Donald Trump.”
Notably, Lutnick's fresh comment comes as Trump signalled a thaw in trade tensions. Trump, earlier on Tuesday had described Prime Minister Narendra Modi as a “dear friend” and expressed confidence that bilateral trade issues could soon be resolved.
“I look forward to speaking with my very good friend, Prime Minister Modi, in the upcoming weeks. I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries,” Trump said in a post on Truth Social.
Responding within hours, PM Modi reaffirmed the strength of India-US ties and stressed the shared commitment to unlocking the “limitless potential” of the partnership.
In a post on X, Modi wrote, “I am confident that our trade negotiations will pave the way for unlocking the limitless potential of the India-US partnership. Our teams are working to conclude these discussions at the earliest. I am also looking forward to speaking with President Trump. We will work together to secure a brighter, more prosperous future for both our people.”
The statements from the leaders came after months of heightened tensions, during which Trump imposed steep tariffs on Indian goods, doubling them to 50 per cent, including an additional 25 per cent duty tied to India’s continued purchase of Russian crude oil.
India has called these measures “unfair, unjustified, and unreasonable.” It also defended its Russian oil imports as a matter of national interest and market strategy, despite US concerns.
Despite the tough stance, Trump recently softened his tone, stating that India and the US have a "special relationship" and there's nothing to worry about as the two countries "just have moments on occasion".
"I always will. I'll always be friends with Modi, he's a great Prime Minister. He's great. I'll always be friends, but I just don't like what he's doing at this particular moment," Trump had said in the Oval Office Friday.
"But India and the United States have a special relationship. There's nothing to worry about. We just have moments on occasion," Trump said, with a smile.