Despite Modi-Trump Thaw, US Commerce Secretary Lutnick Links Trade Deal To Russian Oil Ban

US commerce secretary Howard Lutnick has reiterated Washington's stance linking India's trade prospects with its Russian oil purchases, even as ties between President Donald Trump and Prime Minister Narendra Modi showed signs of improvement this week.

In an interview with CNBC on Thursday, Lutnick was asked about key trade issues. He replied, "Well, we're going to sort out India... once they stop buying Russian oil," Reuters reported. The remarks come despite what appeared to be a thaw at the leadership level, with recent warm exchanges between Trump and Modi.

Lutnick's tone echoed his earlier comments last week, when he told Bloomberg that India would eventually yield to US pressure. "In a month or two months, I think, India is 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," he had said.

Meanwhile, India's commerce and industry minister Piyush Goyal confirmed on Thursday that negotiations for a trade agreement were progressing "in a positive atmosphere." Formal talks had broken down some weeks earlier, though both sides remain in touch.

The negotiations, which began in March-April, have slowed due to India's red lines on agricultural imports, with New Delhi unwilling to let US farm products disrupt its domestic market. Washington, however, has been frustrated with the pace of progress.

On Wednesday, Modi responded positively to Trump's comments on trade, saying there would be "no difficulty" in negotiations. This marked the second friendly exchange between the two leaders on social media in four days. Trump also posted on Truth Social that both countries were "continuing negotiations to address the Trade Barriers."

Still, tensions remain. According to the Financial Times, Trump recently urged the European Union to impose tariffs of up to 100% on China and India as part of efforts to pressure Russia. Senior officials like White House trade adviser Peter Navarro have continued to target India over Russian oil, even as Trump reduces tariffs on China under a current "tariff truce."