US Commerce Secretary Howard Lutnick stated on Thursday that a trade agreement with India will move forward only when New Delhi halts its Russian oil purchases. Speaking to CNBC, he said, “We’re going to sort out India,” but clarified that a deal would come “once it stops buying Russian oil.”

Lutnick’s comments came amid ongoing talks to ease tensions between Washington and New Delhi after a series of trade disputes under former President Donald Trump’s tariffs.

Other Trade Negotiations Progressing

Lutnick also shared updates on other trade negotiations. He said, “We have a big deal coming with Taiwan,” and expressed optimism about finalizing an agreement with Switzerland.

Regarding South Korea, Lutnick explained, “We made a deal, but let’s see if they come through with the paperwork.” However, he refused to comment on whether an immigration raid at a Hyundai plant in Georgia had impacted the timeline of that deal.

Shift in Tone Towards India

Earlier, Lutnick had taken a hard line on India, predicting that New Delhi would “say sorry” and return to trade talks. However, his tone softened after President Trump recently referred to Prime Minister Narendra Modi as a “dear friend.” This shift suggests a possible thaw in relations after years of tension.

In an earlier interview with Bloomberg, Lutnick said, “It’s all bravado because they think it feels good to fight with the biggest client in the world. But eventually, your businesses are going to say, you’ve got to stop this and go make your deal with America.”

He added, “In a month or two months, India’s going to be at the table, and they’re going to say they’re sorry, and they’re going to try to make a deal with Donald Trump. And it will be on Donald Trump’s desk, how he wants to deal with Modi, and that’s why he’s the President.”

Trump and Modi Signal Cooperation

Tensions began to ease after PM Modi met with Chinese President Xi Jinping and Russian President Vladimir Putin at the Shanghai Cooperation Organisation (SCO) summit in Tianjin. Soon after, Trump praised Modi on Truth Social, calling him a “very good friend.”

Trump stated he looked forward to speaking with Modi in the coming weeks. He added that trade negotiations were underway and expressed confidence in a “successful conclusion” that would benefit both nations.

PM Modi responded warmly, saying, “India and the US are close friends and natural partners. I am confident that our trade negotiations will pave the way for unlocking the limitless potential of the India-US partnership.”

Strategic Diplomacy on Display

The SCO summit highlighted India’s role in balancing relationships with major powers like Russia and China while maintaining strong ties with the US. Trump’s positive remarks hinted at Washington’s readiness to reset relations with New Delhi.

This development comes as both countries navigate complex geopolitical issues, including energy security, trade barriers, and regional stability.