India–U.S. Trade Deal Stalled Over Lack of Modi–Trump Talks

India–U.S. trade deal stalled due to lack of Modi–Trump direct talks

U.S. Commerce Secretary Howard Lutnick said the proposed trade agreement between India and the United States failed to materialise because Prime Minister Narendra Modi did not directly speak with U.S. President Donald Trump. Lutnick made the remarks shortly after Trump stated that he was unhappy with India’s continued purchases of Russian oil and warned that Washington could quickly raise tariffs on New Delhi. These comments came at a time when both countries were engaged in negotiations for a bilateral trade agreement, with six rounds of talks already completed.

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U.S. closed deals with other countries, India left behind

In a podcast, Lutnick said he urged Prime Minister Modi to call President Trump to finalise the agreement, but India felt uncomfortable taking that step, and the talks stalled. He explained that during this period, the U.S. went ahead and concluded trade deals with Indonesia, the Philippines and Vietnam, believing that an agreement with India would be finalised even earlier. According to Lutnick, those deals were implemented at higher tariff rates, and when India later indicated readiness to move forward, the situation had already changed.

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