Would be delighted for India to produce a wide range of products: Lutnick

While the US is concerned about India's high tariffs, Commerce Secretary Howard Lutnick said the two countries could find common ground in a new trade agreement

US Commerce Secretary Howard Lutnick on Monday said the United States is looking to shift a broad array of industries to India, calling the country a key manufacturing partner in a potential new trade relationship.

 

“There are an enormous number of product categories that we are going to be delighted for India to produce,” Lutnick said at the US-India Strategic Partnership Forum (USISPF) Leadership Summit 2025, inviting Indian businesses to take part in America’s advanced manufacturing push. “While some manufacturing will be reshored to the US, India could benefit from a unique trade relationship.”

 

Trump warns Apple, Tesla over India expansion

 

These comments follow US President Donald Trump’s criticism of major American companies, particularly Apple and Tesla, over their expansion in India. Trump took aim at Apple’s increasing iPhone exports from India to the US, which rose by 76 per cent to three million devices in April 2025. He argued that such moves could undermine domestic manufacturing and threatened a 25 per cent tariff on iPhones not made in the US. Despite this, Apple supplier Foxconn has continued with its $1.5 billion investment in a new component factory near Chennai.

 

 

Regarding Tesla, Trump described the company’s plans to set up a factory in India as “very unfair” to the US. He said that while building a factory in India might be acceptable, it would disadvantage American manufacturers. Trump also cited India’s high import tariffs as a barrier to Tesla’s success in the country and warned of reciprocal tariffs on Indian goods if the imbalance continues. Despite Tesla’s entry into India, reports suggest Elon Musk may not expand manufacturing in the country anytime soon.

 

Bilateral trade agreement in focus

 

The commerce secretary’s remarks come as both nations step up efforts to finalise a bilateral trade agreement. Lutnick confirmed that a deal is “absolutely on the table” and could be concluded in the “not-too-distant future.” A US delegation is currently in India to advance discussions.

 

“Earlier countries get a better deal. That’s the way it is. I think India is trying hard to be one of the earlier countries, which I appreciate,” said Lutnick. “These kind 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 ordinary DNA of trading relationships between countries.”

 

High tariffs a sticking point in talks

 

One of the main sticking points remains India’s high import tariffs, an issue repeatedly raised by President Trump and US officials. “India has very high tariffs. When we ask them why that is, they don’t know why,” Lutnick said. “Bringing them down to a reasonable level is something we are actively working on.” 

 

He said the US is seeking fair market access for its businesses and a reduced trade deficit with India, while acknowledging that New Delhi wants “special access” to American and allied markets. “Let’s find a proper place in the middle,” he urged. “I will treat you incredibly kindly on things that are important to you, and you bring down your tariffs and give us market access.”

 

Tech and talent: US proposes AI cooperation and ‘gold visa’

 

On the tech and AI front, Lutnick said the US is open to supporting India’s ambitions in data infrastructure and artificial intelligence. “We’re willing to responsibly sell our best chips to allies,” he said, proposing a “Gold Card” visa programme that would allow top global talent, including from India, to work seamlessly across both economies.

 

He also praised India’s regulatory reforms in capital markets, saying they could help attract more foreign listings. “If your regulators are hard, your books are beautiful, and India can attract, they will want to go public there,” Lutnick said.