US–India Trade Deal Blocked by JD Vance and Peter Navarro: Axios Report
A proposed trade agreement between the United States and India was blocked internally by US Vice President JD Vance and White House economic adviser Peter Navarro, according to a new report by Axios citing leaked audio recordings of Texas Republican Senator Ted Cruz.
The Axios report states that Cruz made these remarks during a private meeting with donors, revealing internal disagreements within the administration of President Donald Trump over trade policy and relations with India.
According to the report, the leaked audio recordings suggest that both Vance and Navarro played a key role in opposing the proposed US–India trade deal. Cruz also claimed that President Trump himself “sometimes” blocked the agreement, adding to delays in advancing negotiations.
Axios said the 10-minute audio clip was shared by a Republican source and included criticism of the Trump administration’s broader trade strategy, which has unsettled global markets and strained relations with key partners.
Trade Talks Gain Urgency Amid Tariff Dispute
The report comes at a sensitive time, as trade negotiations between India and the United States have been ongoing for several months. Tensions escalated after the Trump administration imposed an additional 25% tariff on Indian goods over New Delhi’s oil trade with Russia, pushing total duties to 50%.
Cruz Warned Trump About Tariff Impact
According to Axios, Cruz told donors that he and several Republican senators attempted to dissuade President Trump from implementing sweeping “Liberation Day” tariffs announced in April 2025. Cruz reportedly warned that higher tariffs could raise consumer prices, reduce retirement savings, and harm Republicans politically ahead of the 2026 midterm elections.
Cruz described a late-night phone call with Trump shortly after the tariffs were announced, saying the conversation was tense and unproductive. In the recording, Cruz claimed the president reacted angrily to warnings about potential economic fallout.
“If we get to November of 2026 and people’s retirement accounts are down sharply while grocery prices rise, it could be politically devastating,” Cruz said, according to Axios.
Cruz Criticises JD Vance’s Foreign Policy Views
In the leaked recording, Cruz also criticised Vice President Vance’s foreign policy approach, linking it to conservative commentator Tucker Carlson. Cruz alleged that Vance aligns closely with Carlson’s anti-interventionist views, which have been the subject of public debate within conservative circles.
Who Is Ted Cruz?
Ted Cruz was elected to the US Senate in 2012, becoming the first Hispanic American senator from Texas. He is known for his conservative stance on economic and social issues and is widely believed to be considering a presidential run in 2028.
Cruz previously ran against Trump for the Republican presidential nomination in 2016 and has consistently expressed support for stronger US–India relations.
During a visit to India in 2019, Cruz described the two nations as “natural allies,” highlighting economic cooperation and the growing Indian-American community in Texas.
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