by Our Correspondent in Washington DC
In a pointed appeal aimed at reshaping geopolitical alignments, U.S. Commerce Secretary Howard Lutnick on Monday urged India to distance itself from the BRICS bloc and deepen its economic and strategic ties with the United States. Speaking at the US-India Strategic Partnership Forum’s Leadership Summit, Lutnick framed closer cooperation with Washington as contingent upon greater market access, reduced arms purchases from Russia, and a pivot away from economic initiatives driven by BRICS.
“I think India is trying hard to be one of the earlier countries to reach a trade deal with the U.S., which I appreciated,” Lutnick said. “But we would like our businesses to have reasonable access to Indian markets, and we’d like to see the trade deficit reduced.”
While careful not to name Beijing directly, Lutnick cited efforts by BRICS to de-dollarise global trade—a campaign largely spearheaded by China—as detrimental to U.S. interests. “That’s not really the way to make friends and influence people in America,” he remarked.
Strategic Realignment
Lutnick’s remarks underscore Washington’s growing unease with BRICS, a grouping of emerging economies originally formed by Brazil, Russia, India, China, and South Africa and recently expanded to include Egypt, Ethiopia, Indonesia, Iran, and the UAE. India’s active participation in the bloc—alongside U.S. adversaries Russia and China—has drawn increasing scrutiny from American officials.
“There were certain things that the Indian government did that generally rubbed the United States the wrong way,” Lutnick noted, pointing to India’s longstanding defense ties with Moscow. “I think India is starting to move towards buying military equipment from the United States, which then goes a long way.”
The U.S. is also seeking alignment with New Delhi in the broader geopolitical contest with Beijing. Though India and China are both BRICS members, relations between the two Asian powers have been tense following border clashes and diverging interests in global governance.
Tariffs and Tensions
Lutnick’s push for deeper trade engagement comes at a sensitive moment. The Biden administration recently upheld tariffs initiated under former President Trump, including steep duties on steel and aluminum imports that affect Indian exporters. India, the world’s second-largest steel producer, is now facing a 50% tariff on its steel shipments to the U.S., starting Wednesday.
Moreover, if Trump’s “Liberation Day” tariffs remain in place, Indian goods could soon be subject to some of the highest levies in the Indo-Pacific region, including a 27% tariff on certain exports. In retaliation, New Delhi is reportedly preparing to suspend preferential trade benefits for U.S. goods such as almonds and walnuts, and to increase tariffs on American metal imports.
Political Calculus
Lutnick’s comments dovetail with broader U.S. strategy as it courts India as a counterbalance to China. Senator Steve Daines, also speaking at the Washington forum, emphasized that “trust” distinguishes India from China in the eyes of American investors. He recounted how he avoids using his mobile phone when visiting China, but feels “safe” communicating freely while in India.
“Certainly, when it comes to capital, it’s about where you can trust,” Daines said.
At the same time, U.S. officials are wrestling with setbacks in their standoff with Beijing. President Trump recently accused China of violating a 90-day trade truce, citing stalled exports of critical minerals. Treasury Secretary Scott Bessent suggested Trump may soon speak with Chinese President Xi Jinping to defuse tensions, particularly around rare earth supply chains vital to U.S. industries.
A Dividing Line
Despite the diplomatic overtures, the U.S. is clearly signaling that future cooperation with India comes with strings attached. By calling on India to reduce defense purchases from Russia and scale back involvement in BRICS—particularly its support for de-dollarisation—Lutnick is drawing a stark line between strategic partnership and economic independence.
As BRICS evolves into a more politically assertive bloc with ambitions to reshape global finance, Washington’s message to New Delhi is clear: choose sides. Whether India will comply, recalibrate, or chart a third path remains one of the key questions in the new global order.
