Select Language:
India’s trade agreement with the United States has been delayed because Prime Minister Narendra Modi did not make a phone call to President Donald Trump to finalize the negotiations, according to U.S. Commerce Secretary Howard Lutnick. The negotiations collapsed last year, leading Trump to double tariffs on Indian imports in August, raising them to a record 50%. This included a 25% tariff imposed in response to India’s Russian oil purchases.
Lutnick explained on the All-In podcast that everything was in place, but the crucial step was for Modi to connect with Trump. “It’s all set up and you have to have Modi call the President. And they were uncomfortable doing it,” he said. “So Modi didn’t call.”
This statement followed recent U.S. pressure, as Trump warned that tariffs could increase further unless India reduces its Russian oil imports. The escalation has caused the Indian rupee to hit a new low, unsettling investors who are waiting for progress in the ongoing trade negotiations, which remain unresolved.
India is still aiming for a moderate tariff rate that falls between the offers previously discussed with Britain and Vietnam. However, that offer has now expired, Lutnick noted. The Indian trade ministry has not yet responded to inquiries regarding Lutnick’s comments.
Last year, New Delhi and Washington were close to reaching a trade deal, but miscommunication led to its breakdown. An Indian official involved in the talks mentioned that Modi was hesitant to initiate a call to Trump, fearing it might appear one-sided or place him in a difficult position.
ChatGPT
Perplexity
Gemini AI
Grok AI
