US Commerce Secretary Howard Lutnick says India-US trade deal failed after PM Modi did not directly call President Trump. Photo: X.
India-US Trade Deal: The proposed trade agreement between the United States and India failed to materialise because Indian Prime Minister Narendra Modi did not personally reach out to US President Donald Trump, US Commerce Secretary Howard Lutnick has claimed.
Speaking on a podcast, Lutnick said negotiations with India were left incomplete after New Delhi failed to take what he described as a crucial final step: direct engagement between the two leaders.
Lutnick said that President Trump personally closes major trade agreements and that a direct call from Modi was expected to finalise the India deal.
“Let’s be clear, it’s his (Trump’s) deal. He is the closer. He does it. It’s all set up. You got to have Modi call the President. They were uncomfortable doing it. So, Modi didn’t call,” Lutnick said.
According to the Commerce Secretary, US negotiators had already progressed talks with several other countries under the assumption that India’s agreement would be finalised first.
Lutnick explained that because India did not move forward in time, the US shifted focus to other nations, announcing multiple trade deals in quick succession.
“That Friday left, in the next week we did Indonesia, the Philippines, Vietnam. We announced a whole bunch of deals,” he said.
He added that these agreements were negotiated at higher tariff rates, based on the expectation that India’s deal would already be completed.
“Because we negotiated with them and assumed that India is going to be done before them and negotiated with them at a higher rate. So now the problem is, that the deals came out at a higher rate and then India claws back and says, ‘Oh okay, we are ready.’ I said ready for what?!” Lutnick stated.
Lutnick said India attempted to revive the talks weeks later but was told the opportunity had passed.
“You know, it was like three weeks later. I go, ‘Are you ready for the train that left the station three weeks ago?’” he added.
Last year, Lutnick had publicly warned that India must “react correctly” to the United States amid escalating trade tensions.
At that time, he said Washington was seeking to correct trade imbalances with multiple countries, including India.
“We have a bunch of countries to fix like Switzerland, Brazil, right? It’s got an issue. India—these are countries that need to really react correctly to America,” Lutnick said.
He urged India to open its markets and avoid policies he claimed were harmful to US interests.
“Open their markets, stop taking actions that harm America, and that’s why we’re off sides with them,” he added.
At present, Indian exports to the United States are subject to a 50 per cent tariff rate.
The Trump administration has imposed some of the steepest tariffs on India, including a 25 per cent penalty linked to New Delhi’s purchases of Russian oil, among the highest levied on any country globally.
India and the United States have been negotiating a proposed bilateral trade agreement since March. So far, six rounds of talks have been held, but no breakthrough has been announced.
India has strongly criticised the US tariff measures, describing them as “unfair, unjustified and unreasonable.”
India is once again facing pressure from Washington following the introduction of a proposed US law that could impose tariffs of up to 500 per cent on countries purchasing Russian oil.
US Senator Lindsey Graham recently said President Trump has “greenlit” the Russia sanctions legislation.
The proposed law, titled the Sanctioning Russia Act of 2025, would authorise the US administration to impose sweeping tariffs and secondary sanctions on countries importing Russian oil, gas, uranium, and other commodities.
“The President must increase the rate of duty on all goods and services imported from Russia into the United States to at least 500% relative to the value of such goods and services,” the bill states.
Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
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