Washington (TDI): India’s much-anticipated trade agreement with the United States hit a major roadblock after Prime Minister Narendra Modi did not make a phone call to US President Donald Trump to finalize the deal, US Commerce Secretary Howard Lutnick revealed on Friday.
The two countries had been negotiating a bilateral trade pact, but talks broke down last year, prompting Trump to double tariffs on Indian goods in August to 50 percent, the highest in the world.
The hike included a 25 percent levy in response to India’s continued purchases of Russian oil. “It was all set up, and you had to have Modi call the president. They were uncomfortable doing it, so Modi didn’t call,” Lutnick told the All-In podcast, a US business and technology-focused show.
The remarks came amid ongoing negotiations between India and the United States over a proposed bilateral trade agreement. So far, six rounds of talks have taken place, with discussions also focusing on a framework to address the 50 per cent tariffs imposed on Indian exports to the US.
Speaking on a podcast on Thursday (January 8, 2026), US Commerce Secretary Howard Lutnick said he had urged Prime Minister Narendra Modi to speak directly with President Donald Trump to finalize the deal, but India was reportedly reluctant.
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“India was uncomfortable with that, so Prime Minister Modi did not make the call,” he said. Lutnick added that Washington proceeded to conclude trade agreements with other countries, assuming that an agreement with India would have been completed earlier. “Modi didn’t call Trump.
We went ahead and signed several deals after that. When India later reached out saying they were ready, I responded by saying the opportunity had already passed, the train had left the station weeks ago,” he said.
Trump has recently ramped up pressure on India, warning that tariffs could rise further unless New Delhi cuts back on Russian oil imports. The escalating tensions pushed the Indian rupee to record lows and unsettled investors awaiting progress on the stalled trade negotiations.
Lutnick noted that India was seeking a tariff rate somewhere between Washington’s previous offers to Britain and Vietnam, but the window for that deal has now closed.
An Indian trade ministry spokesperson did not immediately respond to requests for comment. Reports last year suggested that a communication gap was a key reason the deal collapsed, with Modi reportedly avoiding a direct call to Trump for fear of being put on the spot in a one-on-one conversation.
The stalled talks underscore the delicate balance in US-India trade relations, as both sides navigate tariffs, energy imports, and broader strategic ties in a rapidly shifting global landscape.
Minahil Khurshid holds a master’s degree in Peace and Conflict Studies from CIPS, NUST. She has a strong interest in current affairs, geopolitics, and policy analysis.
