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‘They won’t buy…’: After Russian oil, corn becomes new flashpoint in US' tariff push on India
India has described the US measures as “unfair, unjustified, and unreasonable” and has maintained that its energy procurement is guided by national interest.
US commerce secretary Howard Lutnick has warned that India risks losing access to the American market if it refuses to purchase the US-grown corn, even as trade negotiations between the two countries are set to resume.
New Delhi could face a “tough time” if it does not reduce tariffs, despite President Donald Trump signalling a softer approach towards India, Lutnick said in an interview with Axios.
He described the trade relationship as one-sided. “They sell to us and take advantage of us. They block us from their economy, and they sell to us while we are wide open for them to come in (and) take advantage,” Lutnick said.
“India brags that they have 1.4 billion people. Why won't 1.4 billion people buy one bushel of US corn? Doesn't that rub you the wrong way that they sell everything to us, and they won't buy our corn? They put tariffs on everything,” he added.
A bushel is a measure of capacity equivalent to 35.2 litres and is used for dry goods.
Lutnick also claimed that President Trump has asked India to “bring down your tariffs, treat us the way we treat you.” He said the administration has “to right years of wrong, so we want a tariff going the other way until we fix this.”
“That's the president's model, and you either accept it or you're going to have a tough time doing business with the world's greatest consumer,” Lutnick stated.
India’s stand on US corn imports
The corn produced in the US is largely genetically modified, and India prohibits both the import and local cultivation of GM corn to prevent such varieties from entering the food chain, NDTV reported.
Even a NITI Aayog proposal to grow GM corn for ethanol production was shelved. Because US corn is genetically modified, it is among the cheapest available globally and is widely used for both human consumption and animal fodder.
America’s push for corn exports
US agricultural groups have raised concerns over severe difficulties faced by farmers, largely due to trade tensions with China. Since April, the two countries have been locked in a trade dispute, leading to a sharp drop in Chinese orders for American crops.
According to Bloomberg data from July, the downturn has driven small business bankruptcies among US farmers to a five-year high.
While Washington continues negotiations with Beijing on tariffs, technology access, and rare earth exports, the Trump administration is seeking to open new markets for American farmers—one of the president’s largest voter bases—in India.
US tariffs on India
President Trump had said for months that a trade deal was close, only to double tariffs on Indian imports to 50 per cent. The move raised concerns about the future of the bilateral trade relationship, which had grown stronger in recent years, including during Trump’s first term.
The United States has also imposed a 25 per cent duty on India’s purchases of Russian oil, among the highest levies on any country.
In recent weeks, Trump and senior officials have criticised India’s oil imports from Russia, alleging they fund the war in Ukraine, a claim New Delhi rejects.
India has described the US measures as “unfair, unjustified, and unreasonable” and has maintained that its energy procurement is guided by national interest and market conditions.
India-US trade talks
After weeks of strain, Trump recently said his administration was continuing negotiations to address trade barriers with India and that he planned to speak with Prime Minister Narendra Modi. Both leaders have expressed goodwill and optimism about reaching a deal.
US trade negotiators are scheduled to arrive in New Delhi for talks later this week. However, ahead of these discussions, Lutnick has already set new conditions.
