US Commerce Secretary Howard Lutnick on Thursday made a big revelation, claiming that the India-US trade deal has not been sealed yet because Prime Minister Narendra Modi did not call US President Donald Trump.
US Commerce Secretary
Howard Lutnick on Thursday made a big revelation on why the
India-US trade deal has not been sealed yet. Speaking at the All-In Podcast, hosted by Chamath Palihapitiya, Lutnick claimed that Prime Minister Narendra Modi’s not calling US President Donald Trump affected the trade deal.
“Let’s be clear, it’s his deal. He’s the closer. He does the deal. So I said, you’ve got to have Modi. It’s all set up. You have to have Modi…they were uncomfortable doing it,” the American Commerce Secretary averred. “So Modi didn’t call,” he claimed. The remarks came after Trump on Thursday approved a bill that can impose at least 500 per cent tariffs for countries buying Russian oil, aiming to “punish them.”
US Senator
Lindsey Graham said that the bill would give the U.S. tremendous leverage against countries like China, India and Brazil to incentivise them to stop buying the cheap Russian oil. It is pertinent to note that back in August, the US imposed additional tariffs on Indian imports to the country, alleging that New Delhi’s purchase of Russian oil was fueling Moscow’s ‘war machine’ in Ukraine.
Since then, the total tariffs on Indian goods in the United States stand at 50 per cent, including 25 per cent of additional tariffs and 25 per cent of Trump’s reciprocal tariffs. In the midst of all this, India and the US have held many rounds of trade talks, with the meeting from December 10 to December 12, when US officials visited New Delhi.
The back and forth
India and the US have been engaged in parallel negotiations, aiming to develop a framework trade deal to address tariff issues and focus on a comprehensive trade agreement. In February last year, leaders from both countries directed officials to begin negotiations, setting an initial goal of completing the first phase by autumn 2025.
However, the deal remains stalled, with India’s trade with Russia remaining a major flashpoint. The proposed agreement in question aims to more than double bilateral trade to $500 billion by 2030 from the current $191 billion.
It is pertinent to note that the United States continues to remain India’s largest trading partner for the fourth straight year in 2024–25, with bilateral trade valued at $131.84 billion, including $86.5 billion in exports from India. American markets still account for about 18 per cent of India’s total export and 6.22 per cent of imports. Hence, tensions between the two nations over the tariff issue remain ripe.
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