US Commerce Secretary Howard Lutnick has issued a stern warning to India, urging New Delhi to make “meaningful concessions” if it wants to sustain strong economic relations with Washington. At the top of the list, Lutnick said, is reducing India’s reliance on discounted Russian crude, which he argued undermines US sanctions and global stability.
In an interview with CNBC, Lutnick said, “We will sort out India; they have to stop buying Russian oil.” He pointed out that before the Ukraine–Russia conflict, India sourced less than 2% of its crude from Russia, but that figure has now surged to nearly 40%. “Because the oil is sanctioned, it’s really cheap. The Russians are desperate for buyers, and the Indians decided to buy it and make a ton of money. But you know what? That is just plain wrong,” he added.
The commerce secretary also drew a sharper line, suggesting that India must choose between aligning with the United States and its global partners or facing steep penalties. “They either need to decide which side they want to be on. Support the dollar, support the United States and support your biggest client—the American consumer—or pay a 50% tariff. Let’s see how long that lasts.”
Focus on manufacturing and workforce development
Beyond oil, Lutnick outlined a vision for closer industrial cooperation modeled on South Korea’s Hyundai experience. He emphasized that companies investing in India should also focus on training American workers and ensuring skills transfer back home. “We want companies with experience to build factories in India, train Americans and then take their people back. It’s about building here, training here, and benefiting American jobs and technology.”
Strained ties amid tariffs
The comments come against the backdrop of steep US tariffs on Indian exports, imposed by President Donald Trump’s administration earlier this year. The move, linked directly to India’s purchases of Russian crude, has placed trade ties under strain. Despite this, both Prime Minister Narendra Modi and President Trump have publicly projected goodwill, reaffirming efforts to rebuild trust through talks on trade, energy cooperation, and broader strategic ties.
The warning from Lutnick underscores the pressure India faces as it navigates its energy security needs while balancing geopolitical realities.
