After Oil, Now Corn: US Tariffs Put New Strain on India Ties.
Even before trade talks with India resumed, Washington has ramped up pressure, with US Commerce Secretary Howard Lutnick warning New Delhi that it could lose access to the American market if it refuses to buy US-grown corn.
In an interview with Axios, Lutnick said India faced a “tough time” if it did not lower tariffs, even as President Donald Trump signaled a softer line. “They sell to us and take advantage of us. They block us from their economy while we are wide open,” Lutnick said. He added that Trump has told India to “bring down your tariffs, treat us the way we treat you.”
Lutnick questioned why India’s 1.4 billion people would not purchase even “one bushel” of US corn, accusing New Delhi of putting tariffs on “everything.” A bushel, equal to 35.2 litres, is a standard measure for dry goods.
Why India Doesn’t Buy US Corn
India does not import genetically modified (GM) corn, which makes up the bulk of US output. GM corn is banned from both import and cultivation in India over concerns it could enter the food chain, either through animal feed or soil contamination. A NITI Aayog proposal to allow GM corn for ethanol production was also shelved.
Because US corn is largely GM, it is among the world’s cheapest, widely used both for human consumption and animal fodder.
Tariffs and Trade Tensions
The corn dispute comes on top of steep tariffs Trump has already imposed on Indian imports, including a 25% duty on India’s purchases of Russian oil. Trump had long promised a trade deal with India but instead doubled tariffs on Indian goods to 50%, sparking uncertainty over bilateral ties.
Washington has repeatedly criticized India’s Russian oil imports, accusing it of “funding the war in Ukraine,” a claim New Delhi rejects. India has defended its crude purchases as driven by market dynamics and national interest, calling the US measures “unfair, unjustified and unreasonable.”
Talks Still on Track
Despite the friction, Trump said last week that negotiations with India were ongoing and that he planned to speak with Prime Minister Narendra Modi in the “upcoming weeks.” Both leaders expressed goodwill, raising hopes of a breakthrough. US trade negotiators are expected in New Delhi this week, but Lutnick’s fresh demands risk complicating talks.
Why Corn Matters to Washington
US farm groups have been pushing hard for access to India’s market. A trade war with China has slashed American crop exports, with orders from Beijing plunging since April. The downturn has pushed many US farmers—one of Trump’s core voter blocs—toward bankruptcy, which hit a five-year high earlier this year, according to Bloomberg data.
As talks with China drag on, Washington is increasingly looking to India as an alternative market for American agriculture—starting with corn.
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