Commerce Secretary Howard Lutnick meets with Indian officials after the tariff decision
India Index founder and CEO Samir Kapadia discusses the benefits of President Donald Trump’s trade deal with India on ‘Mornings with Maria.’
Commerce Secretary Howard Lutnick, accompanied by US Ambassador to India Sergio Gor, met with his Indian counterpart in New Delhi on Thursday. The meeting comes less than a week after the Supreme Court struck down President Donald Trump’s global tariffs.
India’s Commerce and Industry Minister Piyush Goyal hailed the talks as “very fruitful,” posting a photo of the three officials smiling together. The meeting showed new momentum, although India was among the first Asian countries to react to the court’s decision.
A few days earlier, New Delhi had postponed talks with Washington aimed at finalizing a trade framework. However, uncertainty remains as the deal hangs in the balance. In a press release, India’s Ministry of Commerce and Industry said, “We are studying all these changes for their impact.”
After the court ruling, the Trump administration introduced a temporary 10% tariff as several countries began to reevaluate their positions.
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“The Supreme Court decision has created a trilemma for US trading partners, including India,” Ajay Srivastava, founder of the Global Trade Research Initiative, told FOX Business. “Everyone is waiting for more clarity.”
Earlier this month, the US announced a trade deal that eased the reciprocity duties, bringing relief to Indian markets. Under that arrangement, US tariffs on Indian goods are set to fall to 18%, up from the current base of 10%. India had also agreed to buy US goods worth 500 billion over five years.
The agreement was expected to take effect in April. But now that the tax landscape has changed, the South Asian giant may benefit, and experts say it may gain momentum.
Commerce Secretary Howard Lutnick talks about the Trump Gold Card as President Donald Trump looks on during the signing in the Oval Office of the White House in Washington, DC. (Fox News/Pool / Fox News)
“The new tax is lower than the rate negotiated, and the uniform tax erases the competitive advantage agreements were meant to protect,” Srivastava said. “There is little reason to offer tax cuts, investment promises or procurement commitments to Washington, especially if the same access to the US market is available without an agreement.”
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Imports of Russian oil to India also remain a strong factor. In the first trade talks, President Trump said that New Delhi is “committed to stop importing directly or indirectly the oil of the Russian Federation,” although Indian officials have not spoken publicly about this promise.
India, the world’s third largest oil importer and consumer, is expected to see its imports of Russian crude oil fall to a two-year low this month. Still, against the backdrop of the court’s decision, analysts say India will likely continue to buy Russian oil.
President Donald Trump speaks to the media as he meets with Indian Prime Minister Narendra Modi in the Oval Office of the White House in Washington, DC, Feb. 13, 2025. (Jim Watson/AFP via Getty Images/Getty Images)
President Trump remains defiant about everything, insisting that his deals are secure. In a Truth Social post after the Supreme Court decision, he said, “Any country that wants to ‘play games’ with the Supreme Court’s absurd decision, especially one that has been ‘Ripped Off’ the USA for years, even decades, will be met with a much higher Tariff, and worse, than the one it just agreed to. BUY BEWARE!!!”
The White House still has several legal tools to advance its economic agenda, including more trade authorities and reopening new trade investigations.
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In the latest escalation with India, the administration has challenged 126% of solar imports, suggesting that its “America First” policy remains a priority. The tariffs follow allegations that Indian companies unfairly benefited from government subsidies and undercut American manufacturers. According to US Census Bureau trade data, solar sales from the country are expected to reach nearly $793 million in 2024, a nine-fold jump from 2022.
According to the Office of the United States Trade Representative, the total value of US-India trade in goods and services will reach approximately $212 billion by 2024, underscoring the importance of their economic relationship.
Trade in goods alone accounted for about $129 billion, while the US spends about $45.8 billion in trade with India, a gap that is still being worked out in tariff negotiations between the two countries.
