India’s military purchases from Russia and its alignment with BRICS on reducing dependence on the US dollar had “rubbed the United States the wrong way”, US Commerce Secretary Howard Lutnick said, adding that India has addressed those concerns and both countries have “found a place that really works for both” as far as a trade deal is concerned.
“There were certain things that the Indian government did that generally rubbed the United States the wrong way. For instance, they generally buy military gear from Russia. That’s a way to kind of get under the skin of America, if you go to buy your armaments from Russia. India is starting to move towards buying military equipment from the United States,” Lutnick said at the US-India Strategic Partnership Forum (USISPF) in Washington DC.
“…Being a part of BRICS, which is, ‘Oh, let’s move to not support the dollar and dollar hegemony’ — that’s not really the way to make friends and influence people in America. So the President calls that out directly and specifically, and the Indian government is addressing it specifically and directly — and that’s how you move on to a really positive place,” Lutnick said.
‘Deal in the not-too-distant future’
The trade pact, he added, is expected to open up key sectors for Indian manufacturers while also giving US businesses greater access to Indian markets. “And we’ve managed, I think, to be in a very, very good place. And you should expect a deal between the United States and India in the not-too-distant future, because I think we’ve found a place that really works for both,” he said.
I spoke at the U.S.-India Strategic Partnership Forum Annual Leadership Summit tonight.
We have a great relationship between our countries. I’m optimistic for a trade deal soon that will benefit both nations.
🇺🇸🇮🇳 pic.twitter.com/BCO8UYx7Wc
— Howard Lutnick (@howardlutnick) June 3, 2025
Lutnick reiterated that the US aims to bring advanced manufacturing back and to reduce the trade deficit and that the US would like businesses to have reasonable access to the markets of India.
“The United States wants to bring advanced manufacturing back. There are an enormous number of product categories that we are going to be delighted for India to produce. And in fact, there are enormous numbers of industries that we really like to go to, to India. And what happens is, you create the sort of trade deal that puts India in a unique position, because it’ll have a special relationship with the United States,” Lutnick said.
Negotiators from the US are set to arrive in New Delhi for trade talks on June 5–6. Meanwhile, the United States has rejected India’s notice at the World Trade Organization (WTO), which proposed retaliatory action against the 25 per cent US tariffs on steel and aluminium.
In its note dated May 23, the US stated that India is wrongly treating the tariffs on steel and aluminium as safeguard measures. It clarified that these duties were imposed under US law (Section 232), which allows such action if imports are considered a threat to national security.
