Modi’s Delay in Calling Trump Blamed for US-India Trade Deal Setback, Says US Commerce Secretary

Washington: US Commerce Secretary Howard Lutnick has revealed that the proposed US-India trade agreement faced delays because Indian Prime Minister Narendra Modi did not call US President Donald Trump to finalize the deal.

In an interview on the American podcast show “All In” on Friday, Lutnick stated that the agreement was almost complete. However, progress stalled at the final stage because Modi hesitated to make the phone call to President Trump.

“All preparations were in place; it only required Modi to call the President, but he was reluctant,” Lutnick explained. “As a result, the deal stalled.”

Last year, after trade negotiations failed, President Trump doubled tariffs on Indian products to 50 percent in August, the highest global rate at the time. This included a 25 percent additional tariff on Indian imports in response to India’s purchase of Russian oil.

#BREAKING: US Commerce Secretary Howard Lutnick says the India–US trade deal fell through because Prime Minister Modi did not call President Trump.

“I set the deal up. But Modi had to call President Trump. They were uncomfortable with it, so Modi didn’t call.” pic.twitter.com/5PpiGjVEF4

— Aditya Raj Kaul (@AdityaRajKaul) January 9, 2026

The statement comes shortly after Trump warned India this week that tariffs could increase further if it did not reduce oil imports from Russia. Following this warning, the Indian rupee dropped to a historic low, creating uncertainty among investors.

Lutnick also noted that India still seeks a tariff rate similar to offers extended to the UK and Vietnam, but the period for that proposal has expired.

The Indian Ministry of Commerce did not immediately respond to emails requesting comment on Lutnick’s statements.

According to Reuters, last year New Delhi and Washington were very close to finalizing the trade deal, but communication gaps led to the potential agreement being abandoned. A senior Indian official involved in the talks told Reuters that Modi feared a direct one-on-one call with Trump could put him in a difficult position, which is why the call was not made.