India’s proposed trade agreement with the United States was delayed after Prime Minister Narendra Modi did not place a phone call to U.S. President Donald Trump to finalize negotiations, according to U.S. Commerce Secretary Howard Lutnick.
Speaking on Friday, Lutnick said the negotiations effectively stalled last year, after which Trump raised tariffs on Indian goods to 50% in August — the highest level imposed on any country. The measures included a 25% surcharge linked to India’s continued purchases of Russian oil.
In an interview on the All-In Podcast, Lutnick said the framework for a deal was already in place, but required direct communication between the two leaders to close it. He added that Indian officials were reluctant to initiate the call, resulting in no final agreement.
Lutnick’s remarks followed renewed pressure from Trump earlier this week, when the president warned that tariffs on Indian imports could rise further unless New Delhi reduces its reliance on Russian energy supplies.
The warning weighed heavily on markets, pushing the Indian rupee to a record low and unsettling investors who had been hoping for progress in bilateral trade negotiations.
Lutnick also noted that India continues to seek a tariff arrangement that falls between the terms previously offered by Washington to the United Kingdom and Vietnam — proposals that had earlier been agreed but have since expired.
India’s trade ministry did not immediately respond to requests for comment on Lutnick’s statements.
According to Reuters, New Delhi and Washington had been close to reaching a trade deal last year before talks broke down. The report cited an Indian government official involved in the discussions, who said Modi avoided calling Trump out of concern that the conversation could become one-sided and place political pressure on him.
