Washington D.C. – U.S. Commerce Secretary Howard Lutnick indicated today that a trade agreement between the United States and India could be finalized in the “not too distant future,” citing that “we found a place that really works for both countries.” However, his remarks at the 8th annual U.S.-India Strategic Partnership Forum (USISPF) also carried a pointed message for New Delhi regarding its defense procurement.
Lutnick directly addressed India’s continued purchase of Russian military equipment, suggesting it has “offended the US.” He stated, “If you’re going to get your weapons from Russia, that’s a way to kind of irritate America.” He expressed optimism, however, that “India is beginning to move towards buying military equipment from the United States, which then goes a long way.”
The Commerce Secretary underscored the broader geopolitical implications of such actions. “This kind of behavior just strengthens the bond amongst BRICS members, which is to say, ‘Oh, let’s move to not support the dollar and dollar hegemony.’ In America, it isn’t exactly the way to influence people and develop relationships,” Lutnick warned, emphasizing the importance of direct and precise engagement in addressing such concerns.
Trade Agreement on the Horizon?
Despite the diplomatic friction, Lutnick remained optimistic about the prospects of a trade deal. Responding to inquiries about the ongoing negotiations, the senior Trump administration official stated, “You should expect a deal between the United States and India in the not-too-distant future because I think we found a place that really works for both countries.” While he did not provide a specific timeline, his confidence signals significant progress.
The USISPF event also saw IBM Chairman Arvind Krishna, Aditya Birla Group Chairman Kumar Mangalam Birla, and Hitachi Executive Chairman Toshiaki Higashihara honored with the 2025 Global Leadership Awards for their contributions to strengthening the US-India-Japan economic partnership. Notably, this year marked the first time business executives from the QUAD alliance (US, Japan, India, and Australia) were recognized at the USISPF meeting.
Lutnick reflected on past trade negotiations, noting that agreements typically took two to three years to finalize. However, under the current Trump administration, he claimed nations have made decisions in less than a month, alluding to the period when President Donald Trump initiated major tariff wars, prompting countries to hastily conclude trade agreements with the U.S.
“Earlier nations benefit more. It’s just that way. I believe India is making a lot of effort to be among the first nations, and I like that. I believe we’re in a very, very good place,” he reiterated. “But these kinds of deals used to take two or three years, and we’re trying to get them done in a month, which is just not the normal DNA of trading relationships between countries.”
Interim Deal by June 25?
According to sources cited by news agency PTI last week, an interim trade agreement between the two nations could potentially be reached by June 25. This aligns with an upcoming visit by a group of U.S. officials to India for trade negotiations. Rajesh Agrawal, India’s chief negotiator and Special Secretary in the Department of Commerce, recently concluded a four-day trip to Washington, where he discussed the prospective arrangement with his American counterpart.
India’s Minister of Commerce and Industry, Piyush Goyal, also visited Washington to advance trade negotiations, holding two meetings with Secretary Lutnick during his tour.
Both parties are reportedly considering an interim trade agreement ahead of the first tranche of the planned bilateral trade agreement (BTA), especially as the United States’ 26% reciprocal tariff on India is set to remain frozen until July 9 this year. This tariff was implemented by the U.S. on April 2, though American baseline tariffs of 10% continue to apply to Indian imports.
