India-US Trade Deal Stalls After Modi Did Not Call Trump, Says US Commerce Secretary
India’s long-anticipated trade agreement with the United States stalled after Prime Minister Narendra Modi did not make a direct phone call to then U.S. President Donald Trump to conclude negotiations, U.S. Commerce Secretary Howard Lutnick said. Speaking on the All-In podcast, Lutnick claimed the deal was largely ready but faltered due to hesitation from the Indian side to initiate the final call.
The breakdown of talks last year was followed by a sharp escalation in trade tensions, with Trump doubling tariffs on Indian goods to 50% in August—among the highest imposed globally. This included a 25% retaliatory levy linked to India’s continued purchases of Russian oil. Trump has since warned that tariffs could rise further unless New Delhi curbs such imports, adding pressure on bilateral relations.
The renewed tariff threat rattled markets, pushing the Indian rupee to a record low and unsettling investors awaiting progress on a trade pact. Lutnick said India is still seeking a tariff arrangement comparable to earlier U.S. deals with Britain and Vietnam, though those offers have now lapsed. India’s trade ministry has not commented, while previous reports cited Indian officials as saying Modi avoided calling Trump to prevent a potentially one-sided exchange that could place him at a disadvantage.
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