India has leaned on the US with low tariffs and that has to change: US Commerce Secretary Howard Lutnick

US Commerce Secretary Howard Lutnick on Friday said that India and the United States had a goal to come up with a great trade deal as India has leaned on the US with low tariffs, adding that that had to change. He was speaking at the India Today conclave.

He said that the US tariffs are 80 years old and the time has come to change the industrial policy. “It is now time for reciprocal policy and time to rethink the special relationship between India and the US,” Lutnick said, adding that India also needed to step out of the model it has been following.

Lutnick said that the focus is on the bilateral conversation between India and the US, adding that India had to bring down its tariffs and protections. “Your protections are for the world but you need to bring it down for the US. We need to have a marco-level trade agreement and not on just on certain products like bikes and bourbon. Modi can do things, he has a great relationship with Trump,” said the US Commerce Secretary.

Speaking of India’s high tariffs to protect the agricultural sector, Lutnick said, “Your government truly understands you market and we understand ours. Indian market for agriculture needs to open up and can not remain closed. You can be smarter when your most imp trade partner is on the table. Right way is to do it smartly and thoughtfully. We both craft an agreement that is sensible.”

He further said that India is the “I” of BRICS, a group that is looking to replace the Dollar as the currency of international exchange. “These things do not create friendly relations. We want fair trade. But those things are on the table and tariffs are on the table. We can come up with great trade relations through dialogue,” Lutnick said.