'Modi didn't call': Trump aide on why India-US deal stalled
What's the story
United States Commerce Secretary Howard Lutnick has claimed that a potential trade deal between the US and India fell through because Prime Minister Narendra Modi didn't call President Donald Trump. In an interview with entrepreneur Chamath Palihapitiya, Lutnick said he had "set a deal up," but it couldn't be finalized as PM Modi was uncomfortable calling Trump.
Deal details
Lutnick's comments on India-US trade deal
Lutnick said, "It's all set up, but I said I gotta have Modi call the President...they were uncomfortable doing it, so Modi didn't call." He added that India and the US were very close to a deal but New Delhi was "on the wrong side of the seesaw." Lutnick said the US has since signed trade deals with Indonesia, Vietnam, and the Philippines. "India's (deal) was gonna be done before them...I negotiated with them at a higher rate," Lutnick said.
Tariff threat
Trump hints at tariff increase due to Russia issue
The remarks came after Trump hinted at increasing tariffs on India over its energy trade with Russia. "India wanted to make me happy. Modi is a very good guy and he knew I was not happy. And it was important to make me happy. We can raise tariffs on them very quickly," Trump said. The US imposed 25% tariffs on India last August over its oil trade with Moscow, in addition to 25% reciprocal tariffs, taking the total to 50%.
Negotiation stance
India open to discussions, but not under pressure
Last October, Union Minister Piyush Goyal clarified that India was open to talks but wouldn't negotiate under pressure. He said, "We don't do deals in a hurry...or with a gun on our head." Meanwhile, US Senator Lindsey Graham claimed Trump has approved a Russia sanctions bill increasing tariffs on countries trading with Russia. The 'Sanctioning Russia Act of 2025' proposes raising tariffs up to 500% for goods and services from countries like India and China.