The US is increasing pressure on India, demanding that New Delhi stop buying weapons from Russia, reduce import tariffs on US goods and limit its participation in BRICS' de-dollarization efforts, according to the latest statement from US Secretary of Commerce Howard Lutnick.
India's print newspaper reported that speaking at the India Today Conclave annual conference on March 7, US Secretary of Commerce Lutnick emphasized that India's continued import of military equipment from Russia is something Washington wants to end. He also criticized New Delhi's participation in BRICS - an organization that is looking to replace the US dollar in international trade.
"India has bought a large amount of weapons from Russia in history, and we think that needs to end. India is also a 'I' in BRICS - a group trying to create a currency to replace the USD. These do not help strengthen the close feelings we have for India. We want them to stop," Lutnick said.
Under President Donald Trump, the US has repeatedly pressured India to switch to purchasing US-made weapons, including F-35 fighters. In a phone call with Indian Prime Minister Narendra Modi in January, Mr. Trump emphasized this, and during Mr. Modi's recent visit to the White House, the two sides announced many defense cooperation deals, including India buying 6 more P-8I patrol aircraft.
In addition, the tariff issue continues to be a point of tension between the two countries. The US has repeatedly criticized India's high import tax policy, especially for cars and agricultural products, as an unfair trade barrier. Mr Trump once called India the king of tariffs, and it is unclear whether Washington will impose trade sanctions on New Delhi.
Indian Foreign Minister S. Jaishankar has recently underlined the possibility of BRICS replacing the US dollar, asserting that BRICS does not have a unified stance on the issue. However, the US still sees BRICS as a threat to the greenback's position, especially as countries like Russia and Iran seek to escape the effects of sanctions from Washington.
As bilateral trade negotiations continue, pressure from the US could force India to reconsider its strategy. It is unclear whether New Delhi will make a concession under pressure from Washington, or continue to maintain its independent stance on defense and finance. The answer will be clearer by the end of 2025, when the US-India trade deal is expected to be announced.
