In what appears to be a crack within the Trump administration, a leaked audio recording of Republican Senator Ted Cruz revealed how a potential trade agreement with India was blocked by top officials, including President Donald Trump, despite some of them being reluctant to impose heavy tariffs on New Delhi.

In conversations with donors recorded in 2025, Cruz accused Vice President JD Vance and White House trade adviser Peter Navarro of opposing the deal, and suggested that even President Trump occasionally hindered progress.

In the recordings obtained by Axios, Cruz, speaking privately to supporters, said he had to "battle" members of the administration who were reluctant to endorse the India-US trade negotiations. When asked who was resisting, Cruz named Navarro, Vance, and "sometimes" Trump.

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The audio also captures Cruz’s broader criticisms of Trump’s economic strategy, particularly his tariff policy. The senator warned that high tariffs risked slowing the US economy, driving up grocery prices, and hurting retirement savings, potentially jeopardizing Republican prospects in the upcoming 2026 mid-term elections. He described a heated call with Trump over tariffs in which tensions ran high.

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The India-US trade deal has been discussed since early 2025 amid ongoing negotiations aimed at boosting bilateral commerce. Despite positive signals about the pact’s potential, including Trump’s public comments expressing respect for India’s leadership and optimism about a “good deal”,  progress has been mixed, with tariffs on Indian imports still a sticking point.

Cruz has positioned himself as a more traditional free-trade Republican, contrasting his views with those of Vance and others he blames for slowing the deal. The recordings also reveal internal party tensions, with Cruz criticizing conservative commentator Tucker Carlson’s influence on Vance’s foreign policy positions.

Trump's ego stalled trade deal

Earlier in the second week of this month, US Commerce Secretary Howard Lutnick, in an interview, said that the trade deal between India and the US could not materialise until now, as Prime Minister Narendra Modi refused to call Trump directly. The crucial statement from Lutnick highlighted that it was not the policy issue that led to a long delay in trade deal but the US President’s ego and frustration.

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Lutnick said if any country wants to finalise the deal, the head of state has to make a final call to Trump, as it is “Trump’s deal” and added the Indian Prime Minister was “uncomfortable” in following the trend.