E-Paper
India-US trade deal couldn’t be completed as Modi didn’t call Trump: US commerce secy Lutnick
US Commerce Secretary Howard Lutnick said that after Washington agreed to a trade agreement with the UK in May, the Trump administration looked to India
The India-US trade deal could not be completed because Prime Minister Narendra Modi did not call President Donald Trump to secure it, Commerce Secretary Howard Lutnick said on Thursday. Lutnick added that while the Trump administration had been keen to sign an early deal with India, New Delhi “couldn’t get it done when they needed to”.
“It was all set up. But you had to have Modi call President Trump. They [India] were uncomfortable doing it. So Modi didn’t call,” Lutnick said on the All-In Podcast, a popular technology and business podcast.
There was no immediate response from Indian officials to Lutnick’s comments.
Lutnick explained that after Washington agreed to a trade agreement with the United Kingdom (UK) in May 2025, the Trump administration looked to India as one of the key countries that would be next in line. He added India was told that it had “three Fridays” to get a trade deal done with the understanding that countries that signed a trade agreement earlier would receive a lower tariff rate. Those who signed later would receive a higher rate, which Lutnick referred to as a “staircase” approach.
However, that deadline was missed due to the Indian side’s perceived reluctance to have the Indian Prime Minister call President Trump. Subsequently, Asian countries, including Vietnam, Indonesia, and the Philippines, announced deals.
“Because we negotiated these deals and assumed India was going to be done before them, I negotiated them at a higher [tariff] rate. So now the problem is that the deals came out at a higher rate. And India calls back and says, ‘okay we’re ready’. And I said, ‘ready for what?’ It was three weeks later. Are you ready for the train that left the station three weeks ago?” Lutnick said, adding that India was not able to secure the deal in time.
The commerce secretary added that the earlier deal that had been negotiated between India and the US was no longer on the table. “They couldn’t get the deal done when they needed to. What happened is that all these countries kept doing deals, and they [India] were just further in the back of the line. And now what they say is they want the deal between the UK and Vietnam because that is what I negotiated. And they remember. And I remember,” said Lutnick, adding that India would “figure it out”.
Despite trade talks beginning in February, India and the US have remained unable to conclude an agreement. Several rounds of in-person talks took place in 2025, with a team led by Deputy US Trade Representative Rick Switzer visiting India in December. In the absence of a deal, the Trump administration’s 50% tariff on India, including a 25% tariff penalty for purchasing Russian energy, has remained in place.
