A leaked audio recording has revealed significant internal divisions within the Trump administration over trade policy with India, with Senator Ted Cruz emerging as a vocal critic of the current approach. The 10-minute recording, obtained from Cruz's private donor meetings, exposes tensions between key administration figures regarding a potential India-US trade deal.

Internal Opposition to India Trade Deal

According to the leaked audio reported by Axios, Cruz has been advocating for the US President to accept a trade deal with India, facing resistance from several high-ranking officials. The opposition includes Vice President JD Vance, White House economic advisor Peter Navarro, and at times Trump himself.

Cruz's Warning to Donors

In the recorded meetings with donors, Cruz reportedly delivered stark warnings about the political consequences of current policies. "You're going to lose the House, you're going to lose the Senate, you're going to spend the next two years being impeached every single week," Cruz allegedly told his supporters, highlighting concerns about the administration's electoral prospects.

The Texas Senator has notably avoided making any public statement confirming or denying the report, despite posting multiple times on social media platform X since the story broke 13 hours earlier. Both Trump and Vance's spokespersons declined to comment when contacted by Axios.

Deteriorating Trade Relations

The leak comes against a backdrop of significantly strained US-India trade relations. Trade deal prospects have faded considerably since Trump took office, with the administration imposing substantial tariffs on Indian exports.

A research report by the German think-tank Kiel Institute, released in January 2026, provided evidence that "US importers bear nearly all the cost of the 2025 tariffs," using data covering over 25 million transactions and nearly $4 trillion in trade value.

Political Implications

The leaked audio has broader implications for both domestic and foreign policy. Cruz has emerged as arguably the biggest voice of dissent within the Trump administration during its second term. The revelation may provide additional ammunition for Trump critics, particularly as the economic impact of tariffs becomes more apparent.

Recent polling data from the Economist shows Trump's net approval rating has declined to 37%, down 19% overall and 2 percentage points from the previous week. More than half of those surveyed disapprove of Trump's policies, with trade policies facing particular scrutiny ahead of mid-term elections.

Ongoing Challenges

Several significant hurdles continue to complicate potential US-India trade negotiations:

• America's push for greater access to India's agriculture and dairy sectors
• Trump's attempt to claim credit for ending the May 2025 India-Pakistan conflict escalation
• Washington's new immigration policy impacts
• Multiple rounds of negotiations without resolution

The leaked audio, obtained by Axios from a Republican source, demonstrates that support for India exists within both the White House and the Republican Party, despite the current policy direction. However, America's credibility in international affairs has reportedly hit an all-time low as the administration has moved from imposing tariffs on trading partners to threatening allied territories.

The United States has signalled potential flexibility regarding the 25% tariff imposed on India over Russian oil purchases, with Treasury Secretary Scott Bessent indicating there could be a pathway to removing the levy.

Policy Success Cited as Basis for Potential Relief

Speaking to Politico on the sidelines of the World Economic Forum in Davos, Bessent expressed optimism about the tariff's removal, stating "I would imagine there is a path to take them off." The Treasury Secretary emphasized that the tariff had achieved its intended purpose.

Tariff Effectiveness Demonstrated

Bessent argued that the tariff had worked as intended, pointing to a significant reduction in Russian oil purchases by Indian refineries. "The purchases of Russian oil by their refineries has collapsed, so that is a success," he stated, while confirming that "the 25% Russian oil tariffs are still on."

The Treasury Secretary's comments suggest that the policy's effectiveness in reducing Indian purchases of Russian oil could serve as justification for its eventual removal, though no specific timeline or conditions were outlined.

Current Trade Policy Status

While Bessent's remarks indicate potential diplomatic flexibility, he made clear that the tariff remains active. The 25% levy was originally imposed as part of broader efforts to limit Russian oil revenues, with India being targeted due to its continued energy purchases from Russia.

The Treasury Secretary's statements at Davos represent the first official indication from the current administration regarding potential modifications to the India-specific tariff policy.