Tensions Surround U.S.-India Trade Deal
Recently, a report highlighted that U.S. Vice President JD Vance and White House economic adviser Peter Navarro have been resistant to a proposed trade agreement with India. Senator Ted Cruz, a Republican from Texas, shared these concerns in a private meeting with donors.
According to an Axios report, Cruz mentioned that he has been actively trying to convince the White House to support a trade deal with India. When questioned about who was opposing the negotiations, Cruz pointed to Navarro, Vance, and occasionally former President Donald Trump as being the main roadblocks.
In contrast, President Trump recently expressed optimism about the India-U.S. Bilateral Trade Agreement (BTA) while attending the World Economic Forum in Davos. He praised Indian Prime Minister Narendra Modi, saying, “He’s a fantastic man and a friend of mine, and we are going to have a good deal,” when asked about the trade discussions.
This trade agreement, which was officially proposed in February, seeks to increase bilateral trade significantly—from $191 billion to $500 billion by the year 2030. The initial talks began during Prime Minister Modi’s visit to Washington in early 2025.
Insights from Cruz’s Meeting
During the leaked meeting, Cruz reportedly warned donors that Trump’s tariffs could have serious negative effects on the economy, possibly leading to impeachment. He described a late-night call with Trump after the tariffs were announced, where the conversation was heated, with Trump appearing upset.
Cruz cautioned, “If we get to November 2026 and people’s investments are down 30% and grocery prices are up 10-20%, it’s going to be a disaster for us in the elections.” He predicted significant losses for Republicans if the economy doesn’t improve.
Cruz made light of Trump’s branding of the tariffs as “Liberation Day,” joking that anyone using that term would be let go on the spot. He also voiced concerns about Vance and conservative commentator Tucker Carlson, suggesting they fostered a foreign policy stance against military intervention. Cruz linked them to the removal of former national security adviser Mike Waltz for his support of stronger actions against Iran.
Despite the criticism, Vance has stated that he supported military actions against Iran’s nuclear facilities last June.
Cruz also mentioned that Vance and Carlson played a role in appointing Army veteran Daniel Davis, who has been critical of U.S. support for Israel, to a national intelligence position. Cruz said he worked to ensure Davis was quickly removed from this role.
In response to the report, a spokesperson for Cruz emphasized that he is a strong supporter of the president and actively works to advance his agenda. The spokesperson dismissed attempts to create division within the administration as “pathetic and getting boring.” Meanwhile, Carlson claimed he had no involvement in the decisions mentioned by Cruz.
