India’s proposed trade agreement with the United States was delayed after Prime Minister Narendra Modi did not make a telephone call to President Donald Trump to conclude negotiations, US Commerce Secretary Howard Lutnick said in a recent podcast.
Speaking in an interview on the All-In podcast, Lutnick said the talks were set up for closure but required a call between the two leaders. “It’s all set up and you have got to have Modi call the President. And they were uncomfortable doing it. So Modi didn’t call,” he continued.The remarks come as Trump has renewed pressure on New Delhi, warning earlier this week that US tariffs could be raised further unless India curbs its purchases of Russian oil. Following the collapse of trade talks last year, the US doubled tariffs on Indian goods in August to 50 per cent, the highest imposed on any country, including a 25 per cent levy that Trump described as retaliation for India’s energy ties with Russia.
Lutnick said India is still seeking a tariff rate that would fall between earlier US offers made to Britain and Vietnam, though those proposals have since expired.
Reuters had reported that New Delhi and Washington were close to finalising a deal last year, but a breakdown in communication led to the talks collapsing. Citing an Indian government official involved in the negotiations, the report said Modi avoided calling Trump over concerns that a one-sided conversation could have put him in a difficult position.
500% tariff threat
It has also come to light that Trump has backed a Bill, named “Sanctioning of Russia Act 2025”, that might result in increasing the tariffs to at least 500 per cent on countries, including India, that continue to buy Russian oil despite US sanctions.
Republican Senator Lindsey Graham in a post X said the legislation has been given a green signal by the US President after he met Trump on Wednesday. The Bill, he said, is likely to be taken up by the Congress as early as next week.
Since the imposition of a 50 per cent tariff on Indian exports to the US, the relations between the two countries have strained. The trade deal between the two countries was expected to be finalised in January this year.
