India-US Trade Deal Delayed as Modi Did Not Call Trump

According to U.S. Commerce Secretary Howard Lutnick, a trade agreement between India and the United States was delayed because Prime Minister Narendra Modi did not contact President Donald Trump to finalize the pact.

Following the collapse of trade talks last year, President Trump doubled taxes on Indian imports to 50% in August—currently the highest rate in the world. These tariffs included a 25% levy in response to India’s continued purchases of Russian oil.

“Everything was ready, and Modi had to call the president, but they didn’t feel comfortable doing it,” Lutnick stated during an interview on the All-In podcast, a U.S. program hosted by four venture capitalists focused on business and technology. “So, Modi didn’t call.”

Recently, Trump has increased pressure on New Delhi, threatening to raise tariffs further if India does not reduce its Russian oil imports. This warning has intensified investor anxiety over the stalled negotiations and contributed to the Indian rupee hitting a record low. Lutnick noted that while earlier offers have expired, India continues to seek a tariff rate comparable to those previously offered to Vietnam and Britain.

India’s trade minister did not immediately address Lutnick’s comments. However, earlier reports from Reuters indicated that while both nations were on the verge of an agreement last year, the deal fell through due to a communication breakdown. An Indian official involved in the negotiations suggested that Modi refrained from calling Trump out of concern that a one-sided discussion would put him at a diplomatic disadvantage.