Trade ties between India and the United States, already strained by tariffs and disputes over Russian oil imports, have now entered a new phase of friction with Washington pressing New Delhi to open its market for genetically modified American corn. The push has triggered sharp criticism from Indian officials, who insist that such demands are unfair and unreasonable, especially at a time when both nations are preparing to resume high-level negotiations aimed at reviving prospects for a bilateral trade agreement.
US Demands on Corn and India’s Resistance
The latest source of friction in the trade relationship has been Washington’s demand that India purchase American corn, a product widely grown in the United States but often genetically modified. Howard Lutnick, the US Commerce Secretary, has openly criticized India’s stance on agricultural imports, warning that refusal to reduce tariffs and open markets could cost New Delhi access to the American market. In a recent interview, Howard Lutnick accused India of exploiting the United States by selling its goods freely in American markets while restricting US exports through tariffs and regulatory barriers.
The criticism was unusually blunt, with Howard Lutnick pointing to India’s population of 1.4 billion as evidence of untapped demand. “Why won’t 1.4 billion people buy even one bushel of US corn?” he asked, noting that while American markets remain open, India continues to levy tariffs and block agricultural imports. A bushel, equivalent to 35.2 liters, is a standard measure used for dry goods such as corn. The comment reflected growing frustration in Washington, where agricultural groups have been lobbying the Donald Trump administration to secure new export markets amid ongoing trade disputes with China.
From India’s perspective, the issue is not about demand but about policy. The Indian government has repeatedly emphasized that it prohibits the import and cultivation of genetically modified corn due to safety concerns and fears of contamination in the food chain. This policy has been a longstanding feature of India’s agricultural regulations, driven by both consumer concerns and environmental considerations. Even a proposal by NITI Aayog to explore GM corn cultivation for ethanol production was ultimately shelved. For New Delhi, the matter is not simply about trade but about safeguarding its agricultural standards and food security.
Despite this, the United States sees India’s restrictions as another barrier in a trade relationship it already views as lopsided. Howard Lutnick said President Donald Trump has personally urged India to bring down tariffs and treat American exporters the way the United States treats Indian exporters. “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,” Howard Lutnick remarked. He went further, suggesting that the administration might consider tariffs “going the other way” to balance what it sees as years of unfair treatment.
India has dismissed these accusations as unfair, unjustified, and unreasonable. Officials have insisted that the country’s energy procurement and trade policies are guided by national interest, not external pressure. By rejecting GM corn imports, India has sought to align trade decisions with both public health priorities and domestic agricultural policies, even as it acknowledges the need for broader cooperation with Washington.
Tariffs, Oil, and the Wider Trade Battle
Corn is only the latest flashpoint in a much larger and more complex trade dispute. Tensions between India and the United States have been steadily building over the past two years, particularly under President Donald Trump’s aggressive trade policies. Washington has already imposed a 25 percent duty on India’s purchases of Russian oil, a move New Delhi views as one of the harshest levies faced by any country. The United States has also doubled tariffs on Indian imports, raising duties to 50 percent on a range of goods, including steel and aluminum.
American officials argue that these measures are necessary to correct what they see as a one-sided relationship. India, they claim, has long maintained high tariffs on American goods while enjoying preferential access to US markets. Donald Trump himself has repeatedly complained that India takes advantage of American openness, pointing to products ranging from motorcycles to agricultural goods. By doubling tariffs, the administration hopes to pressure New Delhi into making concessions that would open its market to more US exports.
India, however, has strongly pushed back. Officials maintain that Washington’s unilateral tariff hikes not only undermine the spirit of partnership but also risk damaging an otherwise growing trade relationship. Bilateral trade between the two nations has expanded significantly in recent years, driven by sectors such as information technology, pharmaceuticals, and energy. Indian officials argue that punitive tariffs jeopardize this growth and fail to recognize the mutual benefits of cooperation.
The dispute over Russian oil imports has only added to the tensions. Washington has accused India of indirectly funding the war in Ukraine by continuing to buy crude oil from Moscow at discounted rates. New Delhi rejects this argument, asserting that its energy procurement is based on national interest and market conditions. Indian officials have emphasized that affordable energy is critical for the country’s economic growth and that no external power can dictate how it secures its energy needs.
The combination of tariffs, oil disputes, and now pressure on corn imports has created an environment of heightened strain ahead of scheduled trade talks. Yet, despite the challenges, both sides have expressed optimism about finding a path forward. Donald Trump has recently said he plans to speak with Prime Minister Narendra Modi directly to address trade barriers and explore solutions. Senior US trade negotiators are also set to arrive in New Delhi for discussions later this week, underscoring Washington’s willingness to continue engagement despite the tensions.
The stakes are high, not just for India and the United States but for the global trading system more broadly. The United States is under pressure to support its farmers, many of whom have been hit hard by declining exports to China amid ongoing disputes over tariffs, technology access, and rare earth minerals. According to Bloomberg data, bankruptcies among small American farmers have risen to a five-year high, driven by collapsing orders from Beijing. Against this backdrop, opening India’s vast consumer market is seen as a critical opportunity to provide relief to American agriculture.
For India, the risks are equally significant. While tariffs and restrictions help protect domestic industries and preserve policy autonomy, they also expose New Delhi to retaliatory measures that could disrupt access to the American market. At a time when India is seeking to expand its role in global supply chains and attract foreign investment, maintaining a cooperative relationship with Washington is strategically important. This balancing act—defending national interest while keeping trade ties open—remains at the core of India’s approach.
