At the India Today Conclave, U.S. Commerce Secretary Howard Lutnick urged India to lower its high tariffs and engage in comprehensive trade talks to strengthen bilateral relations.
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00:00is now at the forefront of redefining America's trade strategy.
00:05We are delighted and privileged to be joined at the India Today conclave,
00:10live and exclusive from Washington DC,
00:14by the newly appointed Secretary of Commerce in the United States government,
00:19Mr. Howard Lutnick. Can we have a warm round of applause, please?
00:22He's the key man leading the charge in global trade negotiations on behalf of President Donald Trump.
00:33Every single thing he has done and said since his appointment has made global headlines.
00:39And this is the first time that Lutnick will be speaking to an Indian audience live
00:44after assuming this important charge.
00:47Howard Lutnick has been the chairperson and chief executive officer of Cantor Fitzgerald,
00:52he's a titan in the financial world, someone who rebuilt and led one of the most influential firms in global finance,
01:01navigating it through extraordinary challenges.
01:05Some of you may know Mr. Lutnick's brother, Gary,
01:08and 567 employees of his firm were killed in the 9-11 terror attack at the World Trade Center.
01:16The offices of Cantor Fitzgerald were located on the top floors of the One Trade Center.
01:22Lutnick made his name and fame in the empathy and audacity with which he rebuilt this financial giant
01:30from the debris of that dastardly terror attack.
01:33He's now given up his corporate responsibilities and is trying to help President Trump make America great again.
01:41Beyond Wall Street and Washington, there's another side to Howard Lutnick, one that connects him deeply to India.
01:48He's a man who appreciates the art of a well-executed cricket cover drive, not just as a spectator,
01:56but as a father of a son, Ryan, who's played club cricket in the UK.
02:01Lutnick himself enjoys watching the odd IPL match.
02:05He also loves digging into Indian cuisine, proving that negotiating spice levels in a curry
02:12is something he can do with the same finesse as negotiating a trade deal.
02:18Howard Lutnick brings with him not just astute financial acumen,
02:23but the appreciation for the bridges that business and culture can build between nations.
02:29As he leads America's trade conversations, he does so with the confidence of a Wall Street tycoon
02:35and the pragmatism of a dealmaker who understands what makes economies thrive.
02:41Ladies and gentlemen, at the India Today Conclave, join me in extending a warm, India-sized welcome
02:48to the 41st Secretary of Commerce in the United States government, Mr. Howard Lutnick.
02:53It's an absolute pleasure, sir, to have you with us. Thank you so much for taking our time.
02:59The fact that you made the effort of joining us straight right outside the White House means a lot to all of us here at India Today
03:07and to the people of India as a symbol of the deep connections between our countries.
03:12We are delighted that you could join us. Thank you, sir.
03:16I'm glad to join you today. As you know, we are very busy, but it's a pleasure for me to be here with you today.
03:24Thank you so much for making the effort. I want to start by talking about the big macro picture.
03:30Prime Minister Modi was in the White House in mid-February.
03:34The joint statement put out at the end of those talks suggested that the talks were substantial and substantive.
03:41Could you start by giving everyone a broad view of where you think India and America-India ties stand
03:49in the view of the new Trump administration? Mr. Lutnick.
03:56The Trump administration looks at trade from its historical perspective.
04:03You know, back when from the 1870s to 1913s, America only had tariffs and no income tax.
04:12And then post the world wars, America tried to export the strength of its economy,
04:18the power of its economy to help rebuild the world.
04:22And India, of course, was a great beneficiary of its ability to trade with America.
04:27And when America had low tariffs and India protected its own market with very high tariffs
04:33and that trade strategy and that trade policy, let's call that the industrial policy of America is about to change.
04:41It's been 80 years since that was set in in 1945.
04:47But it's time for that to change. And President Trump is thinking about it from the term reciprocal.
04:54How you treat us is how we would like to treat you.
04:58And I would like to tell you that India has some of the highest tariffs in the world.
05:03And that will require a rethinking of the relationship, the special relationship between India and the United States.
05:12So you've been speaking a lot about reciprocal tariffs coming into effect from the 2nd of April.
05:18Can you give us a sense of how you see this come into play?
05:21What level of tariffs is the United States looking at?
05:24Our commerce and industry minister, Piyush Goyal, has been in the U.S. this week.
05:28You've had some dialogue with him. How have those talks gone on?
05:32And how are you looking at reciprocal tariffs starting the 2nd of April?
05:39I think what it requires is India to step out of the model that it's been in
05:44and really look at the reciprocal nature of the relationship between the great nation of India and the great nation of the United States.
05:53Look at it together. We have an extraordinary opportunity together.
05:58But if you include the whole world in it and you're always worried about each and every country of the whole world
06:03and how that pieces together, it would be almost impossible.
06:07So we would like to focus on bilateral conversation just between India and the United States.
06:14Bring down the tariff levels that India has that protects some of its areas.
06:20But remember, your protections are for the world.
06:23And really look at the opportunity of trading with America in a special way,
06:28in a unique way to trade with the most powerful economy in the world
06:33and the largest consuming economy in the world, which is also very, very important.
06:39So we've already seen the Modi administration proactively reduce taxation on the import of big motorcycles, the import of bourbon.
06:49So are you seeing progress in the way that you would have imagined?
06:53Because if a bilateral trade agreement is to be signed between you and Minister Goel by fall,
06:59there is very little time to be able to actually get that done.
07:02Do you think it's possible given the time frame at play?
07:07Well, if the time frame was designed to do motorcycles and bourbon and this product and this product and this product and this product, you're right.
07:17It would take forever, forever.
07:20But because India is so gigantic and the United States is so gigantic, the right way to do it is a macro.
07:28And that's why we think we can get it done.
07:30The United States is interested in doing a macro, large scale, broad based trade agreement with India that takes everything into account.
07:42And that, I think, can be done.
07:44It will require a different kind of thinking, big thinking, things that your prime minister can do,
07:51because your prime minister has a great Prime Minister Modi has a great relationship with President Trump.
07:57That was obvious when we were all together.
08:00I was I was there at the meetings.
08:02I was there at the lunch that we had together.
08:05I've spent time with your ministers.
08:07But it's time to do something big, something grand, something that connects India and the United States together,
08:14but does it on a broad scale, not product by product, but rather the whole thing.
08:20Let's bring India's tariff policy towards America down and America will invite India in to have really an extraordinary opportunity and relationship with us.
08:33Some of what America has been pushing for, for example,
08:36lowering the import duty on some agricultural products would be politically suicidal for Prime Minister Modi if he ever went down that route.
08:45So as a friend and an ally, how does America look at the sensitivity?
08:50Because you've got millions of farmers and you've been to our country.
08:53If he actually reduces trade tariffs on agricultural produce in the way has been suggested by the US, that's goodbye to any government in power.
09:05Well, I think I think the idea is to truly understand.
09:12The good thing is your government truly understands your market and we understand ours.
09:18And the key is to try to find that place.
09:20So, yes, the Indian market for agriculture, it has to open up.
09:25It can't just stay closed.
09:27Now, how you do that and the scale by which you do that, maybe you do quotas, maybe do limits.
09:33You can be smarter when you have your most important trading partner on the other side of the table.
09:40You can't just say, as you said, oh, it's off the table.
09:43That's just not an attractive way of doing business.
09:46The right way to do trade, the right way to do business is to put everything on the table, but do it smartly and do it thoughtfully.
09:54Maybe certain products have quotas.
09:56Maybe certain products have limits.
09:58Maybe certain products you do in certain ways.
10:01And then we do the same thing on the other side and we craft an agreement that is sensible between the two of us.
10:09Some of the tariffs that the United States has announced are potentially inflationary for American customers as well.
10:16I was reading a research report which suggested that for every 10% increase in tariffs, there's a 1% increase in consumer price inflation.
10:24So you're also accountable to American people and the price at which they buy products domestically.
10:31How concerned are you about the inflationary impact of the moves that you're making on tariffs, sir?
10:38Oh, I'm more concerned about the things you read.
10:42There is no inflation from tariffs.
10:46As you know, I mean, India has amongst the highest, if not the highest tariff rate in the world, the second highest tariff rate in the world.
10:55And because you have such high tariffs, do you have inflation?
10:58Of course not.
10:59Remember, inflation only comes from running deficits and printing money.
11:06In India and your economy and all the people watching me today, they understand that tariffs have not created inflation in India.
11:15So my opinion to that is that's nonsense.
11:23Sir, you're also encouraging companies to make in America, whether they're American companies or other companies.
11:30Now, one of the reasons that manufacturing moved out of the United States is that it no longer was economically viable and competitive,
11:39given the high cost of the factors of production, particularly labor, for manufacturing to happen,
11:44which is why it moved to countries like China, Vietnam, to some extent to India.
11:48That reality still remains.
11:51There is some robotics and AI which can help you.
11:54But the fact that America and these global supply chains are built over decades with very sharp financial managers like yourself in your previous life,
12:02looking at which part of the supply chain should be set up in which part of the world.
12:07Now, as you as you try and reconfigure that, A, you've got four years to try and do it.
12:12Can it happen? And B, the kind of impact it will have given the realities of what it costs to manufacture in the U.S.
12:17So what happens is people think about these things as if there's a level set of the world.
12:27Right. If there were no tariffs in the world, no trade barriers, no subsidies in the world,
12:32then each company would try to find the lowest cost labor in the world, the lowest cost production in the world,
12:39and they would create the lowest cost. But that's just not true.
12:44There is virtually no country, if any country in the world, that does not, as you said, protect its farmers, protect this, create this, create that.
12:53So what you're going to see is America is going to say, I want manufacturing to come back home.
13:00I want manufacturing to come back home.
13:02And if that means I need to put a 25 percent tariff on the outside world, I'll do that.
13:07And if that equalizes production home, that will equalize production home.
13:12Autos, semiconductors, lumber, steel, aluminum and copper, these are all products, pharmaceuticals,
13:21these are all products that the president has called out that he wants to make sure for national security purposes
13:27and for purposes of our country, we need that manufacturing to come home.
13:31And if you put up a tariff wall, a barrier, an economic reason for people to come home, they will.
13:39So, you know, the theory of every country in the world is free is just not true.
13:46The key is we want certain manufacturing to come home.
13:50It's going to come home because we have the greatest economy in the world.
13:54We have a giant magnet called the American consumer who buys the most stuff,
14:01buys the most things of any country in the world.
14:04We buy more than double what the 1.4 billion people of China buy.
14:10So you need to do business in America.
14:13It's vital for the world to do business in America.
14:15And some of that business needs to be built in America.
14:20Now, the relationship between India and the United States is a very deep relationship.
14:25It's also a very wide relationship.
14:27Many sitting here would go away with the feeling that since the second Donald Trump presidency started,
14:34the entire focus seems to be on trade and on tariffs,
14:38as if that is the centerfuge of the relationship between our two countries.
14:43Is too much emphasis being laid just on tariffs and on trade?
14:47And how do you see the larger relationship, economic, military, diplomatic,
14:53between India and the United States?
14:55Secretary.
14:57So there are plenty of levers that governments can pull when doing business with each other.
15:06You know, we talked about military.
15:08You know, India has historically bought significant amounts of its military from Russia,
15:14and we think that is something that needs to end.
15:17India is the eye in bricks trying to, you know,
15:22would announce they were trying to create a currency to replace the dollar
15:27as the global economic currency of the world.
15:32You know, these kind of things don't create the love and affection that we really deeply feel towards India.
15:40We would like those things to end, and we would like trade to be more fair,
15:45and we would like to create an incredible and strong and powerful relationship with India going forward.
15:52But those particular things, for example, are on the table for discussion,
15:58and your tariffs, which are some of the highest in the world, are on the table for discussion.
16:03But I think if we do it bilaterally between India and the United States of America
16:08and leave out the noise of all these other countries,
16:12I think what you will see is we will come up with a great trade relationship with India
16:18that I think will help both India and America grow and prosper.
16:23There are many in India's strategic affairs circles who question the extent to which
16:28America can be relied upon and trusted as a supplier of weapons systems.
16:34Our country's history shows that at crucial junctions,
16:38the U.S. has held back on crucial military technology.
16:42Even the GE-404 engine, which we were to install into the light combat aircraft for the Indian Air Force,
16:47has, for inexplicable reasons, been held up.
16:50How do you respond to naysayers in India who say France can be trusted, Britain can be trusted,
16:56Russia has been a reliable arms supplier, but can D.C. be trusted,
17:01given the level of mercurial swings we can see between administrations?
17:07You know, if I listened to that and really took that in,
17:14imagine me saying back to you, so then you should rely on France and Britain
17:20for your defense and for the things that happen to you in the world.
17:24Oh, come on.
17:26America is the greatest military and industrial complex supplier, creator, and builder in the world.
17:36By so, so far, you would never, ever suggest France or the U.K. to be your supplier.
17:44And imagine choosing Russia.
17:46Yeah, that would be a way to really create India's comfort and independence.
17:52No, no, no. America is extraordinary.
17:56Its combat military gear is the greatest in the world.
18:00Its technology is the greatest in the world.
18:03It is vital for India to stop listening to those silly people
18:08and come back and talk to the United States of America, which your prime minister did,
18:13and he did a great job when he was here.
18:15The key is let's form the best relationship between India and the United States.
18:21That is key and that is important.
18:23And that other stuff about relying on others is just noise.
18:27Secretary Latnik, you are at the bleeding heart of the Trump administration,
18:32the most important voice on economic affairs.
18:35From an insider's perspective, can you speak to this large, influential audience
18:40and tell us what is it like to be in the middle of the most important administration
18:46in the midst of the biggest changes in the geopolitical order this world has seen?
18:54It is literally the most fun I have ever had in my life by so many factors.
19:00You have the smartest person at the table in the Oval Office at the Resolute Desk making the decisions.
19:10He is so smart. He is so intuitive.
19:14His sense of what's right and wrong is so clear inside of him,
19:19and he gives such clear direction on what he wants to accomplish that it is the most fun.
19:24It is a challenging world out there because, like we're talking about,
19:29India has large tariffs that protect itself, and it has leaned on America with very low tariffs,
19:36and that level of balance has to change.
19:39So it's challenging and it's interesting, but I have never had more fun
19:44and had a better experience than working for Donald J. Trump.
19:49It is my favorite time of my life.
19:53Secretary Latnik, we've been hearing important voices in the United States led by the President
19:59speaking of taking over Greenland, taking over the Panama Canal, making Canada the 51st state.
20:06Is that belligerence and posturing, or Secretary, are you serious?
20:11Are you serious?
20:12Well, let's talk about the Panama Canal as an example since you raised it.
20:17So America built the Panama Canal for, if you look in present dollars, about a trillion dollars.
20:24So we spent a trillion dollars.
20:2638,000 Americans lost their lives to malaria building the Panama Canal.
20:33Jimmy Carter gave, gave the Panama Canal to Panama in exchange for an agreement that says
20:42they shall not favor any nation, they shall not give a superior deal, basically, to any nation.
20:50And what Panama did is they leased both mouths of the Panama Canal to the Chinese.
20:59The Chinese were building bridges over the canal.
21:02So our military and all our boats had to go underneath Chinese ports and between Chinese ports.
21:09And then if you put an iPhone pointing both ways on a ship going through the Panama Canal,
21:1670% of all language you saw on all the billboards and all the signs and all the containers on both sides,
21:24all Chinese.
21:27You think that's reasonable?
21:29You think that is saying I won't favor any nation?
21:32So Donald Trump says for the national security of the United States of America that that is going to change.
21:39It's not reasonable.
21:41It's inappropriate and it's going to change.
21:43And I promise you, it is going to change.
21:46The president does not say things that he doesn't think are right and he doesn't think are fair.
21:52We need Greenland for national security for the Arctic.
21:56Everyone would agree that Greenland is vital.
21:59And why is Denmark there?
22:01Because the Vikings conquered it hundreds of years ago.
22:03I mean, what does Denmark have to do with Greenland?
22:06You know the answer is nothing.
22:09So I could go point and verse of Donald Trump's thinking, but he is thoughtful, I told you,
22:15really smart, really thoughtful, and really intuitive.
22:19And these things make a lot of sense if you just spend the time and think about them
22:23and don't just sort of toss it all away as if it's not worth deep consideration.
22:29Because you saw from the outgoing Canadian Prime Minister, Justin Trudeau, saying it is impossible.
22:34It is inconceivable that Canada become the 51st state of the United States.
22:38How do you intend to go about getting this done?
22:42Well, the people of Canada are not owned by Justin Trudeau, who is being thrown out of office in a week.
22:52So listening to Justin Trudeau is not my favorite thought for the day.
22:57But, you know, what the president says is that Canada completely, totally, and utterly
23:05leans on the United States of America.
23:07Its entire economy leans on the United States of America.
23:10It doesn't pay really virtually anything into NATO because it just hides behind the United States of America.
23:17It knows the United States of America would protect it.
23:20So tell me what part about what I just said doesn't sound like it's part of America.
23:26I know it seems extraordinary to talk about it, but if their economy is entirely based on America,
23:35it's entirely based on an agreement with America, the defense is entirely about America,
23:40then it's interesting for Donald Trump to think about what is the right answer for Canada.
23:48I'm not, you know, we will see how it plays out.
23:51But there's an enormous amount, all the young people of Canada,
23:55the young people of Canada overwhelmingly would prefer the lower taxes of America,
24:01the incredible protection of America, and the great opportunity that is America.
24:06I think if you did a poll of the young people of Canada, you'd have a different view.
24:12Secretary, I think if it is okay for the United States to take over Greenland,
24:17then what is to stop Xi Jinping from taking over Taiwan?
24:24Well, I didn't say the United States of America was going to take over Greenland.
24:29There are discussions with Denmark and there are discussions with the people of Greenland.
24:35It's our view that the people of Greenland would have to want to be part of the United States of America for that to happen.
24:42It's not that Denmark is a negotiation.
24:45The people of Greenland matter.
24:48The people of Canada matter.
24:50You didn't hear me say something militarily.
24:53You heard me talk about the people of these countries.
24:57This is important that you remember that.
24:59So Taiwan, they don't want to be part of the People's Republic of China.
25:05So that's different.
25:06If the people don't want to do it, then it won't happen.
25:09But if the people want to do it, it's a different story.
25:12So please remember, we are the greatest democratic country in the world.
25:17You are a great democratic country of the world.
25:20We care about our people.
25:22That's the way we think.
25:24And we think the people of Greenland should have the opportunity and the option to join with America if they want to.
25:32Before I end, sir, I want to ask you about China.
25:35We've seen the United States twice over announce new tariffs on China.
25:40Under your leadership of the Commerce Department, how do you see the relationship between China and the United States play out?
25:48And what kind of an opportunity do you think that might provide to a country like India?
25:54Okay, and then before I leave, I'll answer that question.
25:56But before I leave, we have to talk a little bit about the gold card coming from America, okay?
26:01So I have to extend this a little bit and make sure we talk about that next.
26:05But with respect to China, there's two paths.
26:13Number one, China has very, very high tariffs.
26:17Very, very high tariffs.
26:19Maybe the highest in the world, the only ones who could compete with India with the scale of their tariffs.
26:25But let's talk about today, the tariffs we put on now.
26:28That's about opioid production and the ingredients of opioids and fentanyl called precursors.
26:37In 2019, President Xi offered President Trump that he would put the death penalty on anybody who made those ingredients.
26:46And now, in 2025, those same ingredients receive the largest level of subsidies available in China.
26:56So the Chinese government is subsidizing the production of these fentanyl precursors.
27:02And that's what got Donald Trump to put tariffs on China.
27:07End the fentanyl precursor or ingredient production.
27:12Makes a lot of sense.
27:14When we get to April 2nd, we'll start talking about a broader range of tariffs.
27:18But for this period of time, it's about opioids and it's about fentanyl and it's about drugs killing Americans, which has got to stop.
27:28Let's talk then about gold cards.
27:30What's your pitch?
27:32Because at one level, there's this pushback against illegal immigrants.
27:36At the other side, there's uncertainty over H-1B visas.
27:40And you've got this new gold card.
27:43So explain, because there are lots of very rich, influential people sitting here in the audience watching you live across our country.
27:49How do you envision gold cards play out and why do you think this is a good idea, sir?
27:55So the extraordinary opportunity of the American economy, the magnet of the great American economy,
28:04has never offered the ability to have a clear path to citizenship, but the ability to only pay tax in America and not pay tax on your global income.
28:16So that difference where we're offering people, if they come into America through this gold card,
28:21they will only pay tax in America and not pay tax on their global income.
28:27And we think there is an enormous scale of opportunity of people who want to come to America,
28:34want to have this gold card, which is basically just an extraordinary green card if you think about it.
28:40But it's a gold card. It will have quick access to the market.
28:44It will be quickly vetted and approved.
28:48And these people, the great entrepreneurs, great business people, great leaders, will come to America.
28:55They'll build businesses in America.
28:57They'll drive the economic heart of America.
29:01We'll add value from the world in.
29:04And we will reduce our budget deficit because Donald Trump's goal is to balance the budget of the United States of America.
29:13And once he balances the budget of the United States of America, his plan is to have tariffs and other outside fees start to eliminate the internal revenue service.
29:28His goal is to drop taxes on Americans, drop taxes on Americans.
29:34He started with no tax on tips, no tax on overtime, no tax on Social Security,
29:39things like that for the key core of America.
29:43But his big goal is to balance the budget of the United States of America and then drive down income taxes.
29:49So if you can imagine for a moment living in the great economy of America,
29:54having a gold card in the great economy of America, not having to pay taxes on the rest of the world,
30:00but, of course, agreeing to pay tax in America and being part of the greatest resurgence of an economy ever,
30:07in the greatest economy ever, I think you're going to see an enormous amount of people who would like to be members of that club.
30:16And that's called the gold card, the Trump gold card.
30:19And it is going to be incredibly successful in America.
30:23We're out of time, but I want to know, when do we get to see you in India?
30:26You said you're having great fun. What has been the most fun so far?
30:29And how do you hope your legacy will be defined, sir?
30:33I am part of the great Donald Trump administration.
30:38My legacy will be defined by the incredible things he can achieve.
30:43Balancing the budget of the United States of America, reordering trade around the world,
30:48creating amazing relationships with everyone in the world.
30:51And, you know, I have to make trade deals with every country, so I don't think I'm traveling very far very fast.
30:57But I look forward to coming to India, which I love. I love India.
31:02You know, I went to the first IPL final match, so, you know, I love India.
31:07And I look forward to coming.
31:09Which is your favorite IPL team, sir?
31:11No way. I'm not doing that. That would not make me popular. No chance.
31:16You can't say that's tougher than negotiating a trade deal.
31:19Negotiating a trade deal.
31:21Same thing. I would just, no chance.
31:25Well, you spoke candidly on trade.
31:28You guarded your wicket on cricket.
31:31And I think a lot of people sitting here would quite empathize with that.
31:34When we started having this conversation with your office, Secretary Lutnick,
31:38if somebody had said that we'd actually be able to set up this live connection
31:43in the midst of all that you're doing with China, with Mexico, with Canada, with India, with EU,
31:50probabilistically I would have said this is close to just 1%.
31:54But the fact that you were able to take out time in an extremely busy schedule
31:59and come and speak live to us at the India Today Conclave means a lot to us.
32:04So I want to thank you. Can we have a standing applause for Secretary Howard Lutnick
32:09for joining us here and speaking live at the India Today Conclave.
32:15Thank you, sir. We wish you all the best.
32:17And in the end, I want to quote what our Prime Minister said.
32:20You're focusing on making America great.
32:24All of India would like to focus on making India great.
32:27So maybe we can make India and America great.
32:30That's what we're hoping for.
32:32Thank you very much, Secretary Lutnick, for joining us.
32:35This has been an absolute pleasure. Thank you, sir.