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Trade Agreement Between U.S. and India Stalls Due to Modi's Absence on Trump Call

Trade Agreement Between U.S. and India Stalls Due to Modi's Absence on Trump Call

Post by : Meena Hassan

The eagerly awaited trade agreement between the United States and India has encountered a major hurdle. U.S. Commerce Secretary Howard Lutnick disclosed that Prime Minister Narendra Modi's unwillingness to directly engage with President Donald Trump has led to the postponement.

In a recent podcast, Lutnick articulated the eagerness of the U.S. to finalize the deal, pointing out that they had requested Modi to personally connect with Trump to wrap up negotiations. However, Lutnick noted that India expressed being “uncomfortable” with this approach, resulting in no call being made.

This comment follows President Trump's concerns regarding India's ongoing imports of Russian oil, suggesting that the U.S. may raise tariffs on Indian goods "very quickly." The trade discussions, which have already seen six negotiation rounds, aim to address the longstanding 50% tariffs on Indian products entering the U.S. market.

Lutnick also pointed out that while the U.S. has successfully struck trade agreements with other Asian countries like Indonesia, the Philippines, and Vietnam, progress with India has been less favorable. He underscored that delays have resulted in higher tariffs in those other agreements, complicating the negotiations with India.

When India later hinted at a willingness to resume discussions, Lutnick questioned their readiness, pointingly saying, “I said, ready for what?” which suggested that India was not adequately prepared to advance negotiations.

This situation highlights the intricate factors shaping U.S.-India trade relations, where geopolitical tensions, tariff controversies, and diplomatic interactions continually affect the negotiations' speed and outcomes.

Jan. 9, 2026 3:14 p.m. 295
World News Political News trade

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