The United States has sharply escalated trade tensions with India by demanding New Delhi reduce tariffs on American goods, particularly agricultural exports. Commerce Secretary Howard Lutnick warned that India could lose privileged market access if it refuses to purchase US-grown corn, accusing India of blocking American products while enjoying open access to the US market.

President Donald Trump has frequently argued that trade relations with India are unbalanced. He recently doubled tariffs on Indian imports to 50 percent, one of the steepest hikes imposed globally. Trump has also maintained tariffs on India’s purchase of Russian crude oil, setting duties as high as 25 percent, which New Delhi has described as punitive and unjustified.

Washington has sought to exploit India’s energy dependency by linking crude imports from Russia to wider trade disputes. US officials accuse India of indirectly funding Moscow’s war in Ukraine through discounted energy imports. India rejects the allegation, insisting that energy procurement is based solely on national interest and competitive pricing, not geopolitics.

Despite the hardening rhetoric, Trump signalled last week that he is willing to resume talks with Prime Minister Narendra Modi. Both leaders exchanged goodwill statements, with Trump expressing hope for a trade deal “in the upcoming weeks.” Yet Lutnick’s remarks, delivered just before US negotiators arrive in New Delhi, indicate that Washington continues to couple concessions with heavy-handed threats.

The American demand for Indian purchases of US corn is rooted in domestic farm pressures. Since the onset of the US-China trade war, Chinese orders for US crops have sharply fallen, leaving American farmers struggling with surplus stock and declining profitability. Reports show farm bankruptcies in the US reaching five-year highs, making agricultural exports a sensitive political issue in an election climate.

With China scaling down agricultural imports, Washington is aggressively seeking alternate major markets to absorb excess production. India, with its 1.4 billion-strong population, is viewed as the ideal substitute. Lutnick even mocked India for not importing “one bushel of US corn,” despite its large consumer base, framing it as evidence of unfair trade practices.

Trump has repeatedly demanded that India match US tariff levels. He claimed that the American economy is “wide open” to Indian exports while New Delhi enforces prohibitive barriers. The White House is now using tariffs and access threats to push India into lowering its trade barriers or opening agriculture as a bargaining chip in broader negotiations.

Trade negotiators from both countries are scheduled to resume discussions in New Delhi later this week. While Trump’s softened statements suggest an attempt to de-escalate, the US agenda continues to link market access concessions with geopolitical issues like Russian oil. India, meanwhile, is expected to resist pressure on agricultural imports in order to protect its own farmers and maintain food security independence.

Agencies