INTERNATIONAL: India Boasts of 1.4 Billion People but Fails to Buy Even Corn: Howard Lutnick
Critique on Trade Imbalance
US Commerce Secretary Howard Lutnick sharply criticized India’s trade practices in a recent Axios interview, highlighting the lack of reciprocity.
He pointed out that despite India’s 1.4 billion population, the country imports no US corn, imposing high tariffs on American agricultural products.
Lutnick described the relationship as one-sided, with India freely exporting to the US while blocking access to its market.
Push for Reciprocal Policies
Lutnick emphasized President Donald Trump’s vision of fair trade, urging India to lower tariffs to match US openness.
He warned that failure to do so would lead to challenges in accessing the world’s largest consumer market, potentially escalating trade barriers.
This stance aims to correct years of perceived imbalances, focusing on sectors like agriculture where US exports face restrictions.
Tariffs Linked to Russian Oil
The comments come amid heightened tensions, with the US imposing 50% tariffs on most Indian imports last month due to India’s purchases of discounted Russian oil.
These measures, doubling from 25%, seek to align New Delhi with US policies against Russia over Ukraine.
India has dismissed the tariffs as unjustified, pledging actions to protect its economic interests.
India’s Position and Future Negotiations
Indian officials argue that sourcing affordable Russian energy meets domestic needs and note similar practices by other nations.
Trump has indicated that enforcing the full 50% rate is complex and expressed openness to dialogue despite policy differences.
Lutnick predicted Indian businesses would soon advocate for a deal, viewing current resistance as short-lived.
Broader Trade Context
Agriculture remains a core issue, with India’s average tariff on US farm goods at 37.7% compared to 5.3% on Indian exports to the US.
Experts highlight structural differences, including India’s focus on protecting small farmers and concerns over genetically modified crops.
As strategic partners in defense and technology, both nations continue engagement while addressing trade frictions.