Trade deal with India 'not-too-distant', but Russia ties 'rub US the wrong way': US Commerce Secretary

US Secretary of Commerce Howard Lutnick said Monday that a trade agreement between the United States and India could be reached in the “not-too-distant future” as the two countries have found a place that works for them.

“So the idea is when they put the right person and India put the right person on the other side of the table, and we've managed, I think, to be in a very, very good place," Lutnick said in his keynote address at the eighth edition of the US-India Strategic Partnership Forum (USISPF) Leadership Summit here Monday.

"And you should expect a deal between the United States and India in the not-too-distant future because I think we found a place that really works for both countries,” he added.

Lutnick said both countries are moving swiftly to reach a trade agreement that would expand market access and reduce barriers.

“These kind of deals used to take two or three years, and we're trying to get them done in a month, which is just not the ordinary DNA of trading relationships between countries.”

The Secretary noted that India’s high tariffs remain a sticking point, but said President Donald Trump is prepared to confront the issue directly.

“India is very protectionist with tariffs. They have a 100% tariff on this, and a 100% tariff on that. And if you ask them why, the answer is, ‘I don't know why. It just is,’” Lutnick said, adding that negotiations are now centred on reducing those barriers to make it a “proper trading relationship.”

In exchange, India is expected to seek preferential access to the US market.

“That’s the trade-off,” Lutnick said. “If I say, ‘Look, I'll treat you incredibly kindly on the things that are really important to you,’ and you bring down your tariffs and give us market access...let's find the proper place in the middle.”

He pointed out that strong ties between President Trump and Prime Minister Narendra Modi are helping drive the negotiations.

“If you think about the world, how many other leaders actually are elected by their country,” he said, adding that it is “very, very rare.”

“That connection is pretty unique because it’s rare...and so their relationship is very strong and very positive,” he said.

However, Lutnick acknowledged there are irritants in the relationship, including India’s historical reliance on Russian military equipment and its participation in BRICS, a bloc that includes countries like China and Russia.

Trump had issued a stark warning to BRICS nations pursuing a new currency, threatening 100% tariffs and exclusion from the US market.

In December 2024, then Reserve Bank of India Governor Shaktikanta Das dismissed suggestions that India was pursuing de-dollarisation.

“There is no step which we have taken that specifically wants to de-dollarise,” Das said during a post-monetary policy press conference in Mumbai. “Our effort is to de-risk our trade. Dependence on one currency can be problematic at times because of appreciation or depreciation.”

Lutnick said India is addressing concerns “specifically and directly,” referring to steps toward purchasing more US military equipment.

Responding to a question on Indian talent in the US against the backdrop of ongoing visa and immigration discussions, Lutnick said the success of Indian entrepreneurs in America, individuals of Indian nationality leading and running so many of the “great companies” of America “because they're fantastic entrepreneurs, fantastic business people, smart, thoughtful, educated in every way.

The card, which would replace the EB-5 visa program, offers a pathway to US residency and potentially citizenship.

“I expect the Trump Card will create really an enormous opportunity for people to come to America,” Lutnick said. “It’s a wonderful opportunity for people to be part of two economies.”