The conversations, recorded during private donor meetings in mid-2025, reveal sharp disagreements inside the White House over trade policy toward India. Responding to questions from donors about the stalled negotiations, Cruz named White House Trade Advisor Peter Navarro, Vice President Vance, and at times Trump himself as the main obstacles.
The leaked remarks have drawn attention because India and the US began talks on a comprehensive trade agreement early in 2025, with multiple rounds of negotiations already completed. The deal was expected to ease tariffs, improve market access, and strengthen strategic economic ties between the two countries.
In the audio, Cruz also criticised the Trump administration’s tariff policy, warning that aggressive trade measures could backfire politically and economically. He said tariffs imposed in April 2025 risked damaging retirement savings and driving up food prices for American consumers.
Cruz claimed that he and several other Republican senators made a late-night phone call to Trump to urge a reconsideration of the tariffs. According to the recording, the exchange turned tense. Cruz said he warned the president that a sharp fall in retirement accounts and a 10–20% rise in grocery prices ahead of the 2026 midterm elections could cost Republicans control of Congress. He alleged that Trump angrily dismissed the warning.
The audio highlights an ideological split within the Republican Party between traditional free-trade advocates and the ‘America First’ faction. Cruz, a long-time supporter of free trade, suggested that Vice President Vance’s position was influenced by conservative commentator Tucker Carlson, reflecting a broader shift toward economic nationalism within the party.
Despite the revelations, both Cruz and the White House have publicly sought to downplay tensions. A spokesperson for the senator said Cruz remains a strong ally of the administration and is committed to advancing shared policy goals.
The stalemate comes as the US has imposed cumulative tariffs of 50% on Indian goods—25% under so-called reciprocal measures and another 25% linked to India’s purchase of Russian oil. Washington argues the oil trade indirectly supports Russia’s war in Ukraine, a claim New Delhi has rejected as unjustified.
While talks have not formally collapsed, the leaked audio suggests that internal US disagreements, rather than diplomatic differences with India, have significantly slowed progress on the proposed trade deal.
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