India’s trade agreement with the United States was delayed because Prime Minister Narendra Modi did not call US President Donald Trump to finalize the deal, according to US Commerce Secretary Howard Lutnick.
The trade negotiations collapsed last year, prompting Trump to double tariffs on Indian goods in August to 50 per cent, the highest in the world. The tariffs included a 25 per cent levy in response to India’s purchases of Russian oil.
“It was all set up, and Modi needed to call the president, but they were uncomfortable doing it. So Modi didn’t call,” Lutnick said in an interview on the All-In podcast, a US show hosted by four venture capitalists focused on business and technology.
Trump has recently increased pressure on India, warning that tariffs could rise further unless New Delhi reduces its Russian oil imports. The threat contributed to a record low in the Indian rupee and heightened investor anxiety over the stalled trade negotiations. Lutnick noted that India is still seeking a tariff rate between the levels previously offered to Britain and Vietnam, though those offers have now expired.
India’s trade ministry did not immediately comment on Lutnick’s remarks. Reuters previously reported that India and the US were close to reaching a deal last year, but a breakdown in communication led to the collapse of the agreement. An Indian official involved in the talks said Modi could not have called Trump for fear that a one-sided conversation might put him at a disadvantage.
