'America will invite India in': US Commerce Secretary urges New Delhi to bring tariffs down

US Commerce Secretary Howard Lutnick. (Image: Reuters)

Amid mounting concerns over reciprocal tariffs announced by US President Donald Trump, US Commerce Secretary Howard Lutnick suggested that India needs to lower its tariffs, calling it crucial for forging an "extraordinary relationship" between the two nations.

While speaking at the India Today conclave, he said that India and the United States had a goal to come up with a great trade deal as India has leaned on the US with low tariffs, adding that that had to change.

On America pushing India to reduce duties on agriculture goods, Lutnick commented that the US is keen on establishing a comprehensive, large-scale trade agreement with India that encompasses all key aspects and urged both nations to engage in direct bilateral discussions to reshape their trade dynamics.

"Indian market for agriculture has to open up, it cannot just stay closed. How you do that and the scale by which you do that, maybe do limits, you can be smarter when you have your most important trading partner on the other side of the table. Maybe certain products have quotas and limits and we do the same thing on the other side and we graft an agreement that is sensible between the two sides," he told India Today.

Lutnick added, "There is no inflation from tariffs. India has the second-highest tariffs in the world, but tariff does not create inflation, tariffs has not created inflation in India. Inflation only comes from running deficits and printing more money."

Echoing Trump's agenda, he stressed India has some of the highest tariffs in the world, necessitating a reassessment of the trade relationship to determine the future course of ties between New Delhi and Washington.

"US is interested in doing a macro, broad-based, large scale trade agreement with India that takes everything into account. We need to do something big not product-by-product. Lets bring India’s tariff policies towards US down and America will invite India in," he added.