India-US trade talks have collapsed after Modi fails to call Trump: Lutnick

NEW DELHI: A proposed trade agreement between India and the United States stalled last year after Prime Minister Narendra Modi did not place a phone call to then-President Donald Trump, according to U.S. Commerce Secretary Howard Lutnick.

The negotiations, which aimed to reduce trade barriers, collapsed in 2025. In August, Trump responded by doubling tariffs on Indian imports to 50%, the highest globally, including a 25% levy on Indian purchases of Russian oil.

“Everything was ready, but Modi needed to call the President. They were hesitant, so it didn’t happen,” Lutnick said during an interview on the All-In podcast, a U.S. show focused on business and technology.

The breakdown comes as Trump renewed pressure this week, warning that tariffs could rise further unless India limits its Russian oil imports. The threat has contributed to the Indian rupee falling to record lows, raising concerns among investors awaiting progress on a long-promised deal.

India continues to seek tariff terms that fall between Washington’s agreements with Britain and Vietnam, though that offer has since lapsed, Lutnick added.

Officials in New Delhi did not immediately comment on the statements. Reports suggest that Modi avoided the call to prevent a potentially awkward, one-sided discussion with Trump.

Reuters