Trump, Vance Accused Of Stalling India-US Trade Deal as Senator’s Leaked Audio Sparks Tariff Debate

Fresh uncertainty has surfaced around the long-pending India-United States trade agreement after purported leaked audio recordings of a senior US lawmaker suggested that resistance from within the White House may be blocking progress.

The remarks have emerged at a time when trade ties are already under strain due to steep tariffs imposed by Washington.

Leaked Audio Points to Internal White House Resistance

According to a report by Axios, prominent Republican Senator Ted Cruz has privately blamed White House trade adviser Peter Navarro, Vice President JD Vance and President Donald Trump for holding up a potential trade deal with India. The outlet reported that Cruz made these remarks during phone calls with political donors, portions of which were allegedly leaked.

In the recordings, the Texas senator is said to have told supporters that he was "battling" the White House to move negotiations forward with New Delhi. The comments have drawn attention as trade talks between the two countries have been ongoing for several months without a breakthrough.

Tariffs Deepen Strain in India-US Trade Talks

The Axios report comes against the backdrop of heightened tariff tensions between the two nations. Trade discussions took on greater urgency after President Trump imposed an additional 25 percent tariff on Indian goods over New Delhi's oil trade with Russia, pushing total US duties on India to 50 percent.

The tariff decision has complicated negotiations that were already facing political and economic hurdles on both sides, raising questions over whether a comprehensive trade deal is achievable in the near future.

Republican Divisions Over Protectionist Policies

The report also sheds light on growing divisions within the Republican Party, which historically favoured free trade before Trump's rise. Cruz reportedly told donors that he, along with several other Republican senators, attempted to dissuade Trump from launching the so-called Liberation Day tariffs on countries worldwide in April last year.

Cruz is said to have warned the President that sweeping tariffs could fuel inflation, harm Americans' retirement savings and cost Republicans control of both the House and the Senate in the 2026 midterm elections. The concerns reflect broader anxiety among party leaders about losing ground to Democrats.

Cruz's Longstanding Support for India Ties

Senator Cruz, who lost to Trump in the 2016 Republican presidential primaries and is widely believed to be weighing a 2028 presidential run, has consistently backed stronger ties with India.

"India and America are natural allies. We are working together more and more. India is the largest democracy on the face of the earth. We're blessed to have over a half million Indian-Americans living in the great state of Texas," Cruz said during a visit to India in 2019.

"We share common interests and values, including standing up for human rights, free markets, and fair commerce. We also share common rivals. While China has sought to exert influence, India has resisted subjecting its economy to China, and looked beyond the region to bolster its economy. Our partnership is critically important in countering China's aggression," he added during the same visit, where he met Defence Minister Rajnath Singh.

Indian-Americans remain a significant political constituency in Texas. According to AAPI data, more than 500,000 Indian-Americans live in the state, making up roughly two percent of its population.