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U.S. Commerce Secretary Howard Lutnick highlights India trade dispute and Japan’s $550B investment deal. Photograph: (The Squirrels IN)
1. “India Will Say Sorry”—Provocative, But Strategic
On September 5, 2025, Howard Lutnick made headlines with his striking assertion: “India will say sorry and make a deal”—a bold forecast amid U.S.–India trade tensions. In a Bloomberg interview, he emphasized that India would eventually return to the U.S. market, stating, “the customer is always right”.
Context matters: Lutnick critiqued India’s military ties with Russia, its role in BRICS, and its “very protectionist” tariffs—some allegedly as high as 100%. Yet, he tempered confrontation with optimism, expressing hope for a bilateral trade pact in the “not-too-distant future”, and praising India’s remarkable economic momentum and entrepreneurial spirit.
2. A Landmark $550 Billion Japan Investment Deal
Lutnick played a pivotal role in negotiating a groundbreaking $550 billion investment framework with Japan, announced in July 2025.
Key traits of the deal:
Japan would commit $550 billion via government-backed loans and guarantees.
The U.S. would reduce tariffs on Japanese imports—especially autos—from 27.5% to 15%.
Japanese investments would target strategic U.S. sectors: semiconductors, antibiotics, rare earths, and more.
Returns on investments would be split—90% to the U.S., 10% to Japan—agreed upon under Trump’s “our money to invest” framing.
The U.S. aims to formalize details soon as Japanese envoy Ryosei Akazawa plans to finalize terms in Washington.
U.S. media hailed the deal as “monumental” and an entirely fresh diplomatic model. Lutnick suggested this could serve as a blueprint for similar agreements with Europe.
3. A Trade Vision with Global Implications
Lutnick’s approach blends bold rhetoric with strategic diplomacy:
For India, his tone oscillates between critique—over tariffs, BRICS alignment, and Russian arms—and encouragement that diplomatic resolution is possible.
With Japan, he's leveraging unprecedented investment for U.S. security and manufacturing goals.
He positions these deals as models—first with Japan, next potentially with EU and other partners.