A senior aide to former US President Donald Trump has claimed that a near-final trade deal between India and the United States failed to materialise because Prime Minister Narendra Modi did not personally reach out to Trump.
Howard Lutnick, who served as the US Commerce Secretary, said that negotiations between the two countries were almost complete, but stalled at the final stage. Speaking on a podcast with entrepreneur Chamath Palihapitiya, Lutnick claimed he had arranged the framework of the agreement but insisted that Prime Minister Modi personally call Trump to close the deal.
“It was all set up, but I said I need Modi to call the President. They were uncomfortable doing it, so Modi didn’t call,” Lutnick said, recalling the discussions. He added that India was “on the wrong side of the see-saw” despite being very close to finalising the agreement.
According to Lutnick, the India–US deal was expected to be concluded even before similar agreements the US negotiated with countries such as Indonesia, Vietnam, and the Philippines. He claimed that talks with India were conducted at a higher tariff rate and were prioritised.
The remarks come amid ongoing tensions over trade and tariffs between the two countries. Recently, Trump hinted at increasing tariffs on India if New Delhi failed to cooperate with Washington on limiting purchases of Russian oil. He stated that India wanted to “make him happy” and suggested tariffs could be raised swiftly if US expectations were not met.
The US had imposed 50% tariffs on Indian goods in August last year, citing India’s continued energy trade with Russia. Washington has since used the tariffs as leverage to push New Delhi to scale back oil imports from Moscow.
India, however, has maintained that its energy decisions are based on market conditions and domestic needs. In October, Union Minister Piyush Goyal made it clear that India would not negotiate under pressure or deadlines, stating that the country does not enter deals “with a gun on our head.”
Meanwhile, concerns are growing over the possibility of even steeper tariffs. US Senator Lindsey Graham recently claimed that Trump has approved a proposed Russia sanctions bill that could impose up to 500% tariffs on countries continuing trade with Moscow, potentially including India.