Trump aide targets India in trade dispute, says New Delhi needs fixing

Amid trade talks with India, over trade barriers, energy purchases and the recent tariffs, the Donald Trump administration's Commerce Secretary Howard Lutnick has made a controversial statement about India and other countries that oppose opening their markets to American goods.

Lutnick said that “New Delhi needs fixing,” and threatened that if India wants to sell to American consumers, "it must play ball with the President". While pressing India and Brazil to open their markets to American goods, he urged them to stop taking actions that would potentially harm the interests of the United States.

Also read: Trump declares 100 pc tariff on branded drugs from Oct 1; Indian pharma may be hit

In an interview with News Nation, Lutnick said, “We have a bunch of countries to fix, like Switzerland, Brazil, India — these are countries that need to really react correctly to America. Open their markets, stop taking actions that harm America, and that's why we're offside with them".

'India have to understand...'

Lutnick also said that, "You (India and Brazil) have to understand that if you want to sell to the US consumers, you've got to play ball with the president of the United States."

"The way that President Trump does deals, the first deal is always the best deal. And then the next deal is higher, the next deal is higher, the next deal's higher," Lutnick noted. According to him, several trade talks remain unsolved, including the ones with India and Brazil, on the US agenda.

Also read: Why tariffs won’t make America a manufacturing giant again

"You still have Taiwan. That's a big one that's coming pretty soon. I expect to really be talking to them and sorting that out. So a bunch of countries left, but the big ones, India and Brazil, are little...but we'll sort it out over time," he said.

India, US resume trade talks

Meanwhile, India and the US resumed trade talks. A team led by Commerce and Industry Minister Piyush Goyal was in Washington from September 22 to 24, and conducted meetings with US Trade Representative Ambassador Jamieson Greer and Ambassador-designate to India Sergio Gor to discuss a possible agreement.

A statement from the commerce ministry called the meetings productive. "The delegation had constructive meetings with the US Government on various aspects of the deal. Both sides exchanged views on possible contours of the deal, and it was decided to continue the engagement with a view to achieving an early conclusion of a mutually beneficial Trade Agreement," it said.

Also read: Build in America or pay: Trump tariff threat rattles Indian drugmakers

As of now, India has been facing a fresh 100 per cent tariff on branded and patented pharmaceutical imports, effective October 1.

On September 25, Trump said unless companies establish their manufacturing units in the US, a 100 per cent tariff will be imposed on them. This announcement made further rift between the two countries, as America imposed 50 per cent on Indian goods, including 25 per cent as a penalty for New Delhi's continued crude oil purchase from Russia.

Also read: Thanks, but no thanks. India doesn’t really need US soybean, corn or milk

India would return to negotiating table

This is not the first time Lutnick has criticised India’s trade and energy policies. A few days earlier, Lutnick said that India would return to the negotiating table under pressure from domestic business in India.

Speaking to Bloomberg on Friday (September 26), he said, “So I think what happens is it's all bravado, because you think it feels good to fight with the biggest client in the world, but eventually your businesses are going to say you've got to stop this and go make a deal with America”.