US Commerce Secretary Cites Missed Call as Deal Breaker
United States Commerce Secretary Howard Lutnick has publicly stated that a proposed trade deal between India and the U.S. failed to materialize because Indian Prime Minister Narendra Modi did not make a crucial telephone call to then-President Donald Trump. Speaking on the 'All-In' podcast this week, Lutnick claimed that the deal was 'all set up' and that he had advised Indian officials that Modi needed to call the President to finalize the pact. According to Lutnick, Indian officials were 'uncomfortable doing it,' leading to Modi not making the call. He further suggested that after this, the U.S. proceeded with other trade agreements, and when India later expressed readiness, the opportunity had passed.
India Rejects Account, Cites Multiple Modi-Trump Calls
In a swift response, India's Ministry of External Affairs spokesperson, Randhir Jaiswal, dismissed Lutnick's remarks as 'not accurate.' Jaiswal emphasized India's continued interest in a 'mutually beneficial trade deal' and highlighted that Prime Minister Modi and President Trump had, in fact, spoken on the phone on eight occasions in 2025, covering various aspects of their extensive partnership. New Delhi maintains that it has been committed to negotiating a bilateral trade agreement since at least February last year, with multiple rounds of negotiations bringing the two nations 'close to a deal' on several occasions.
Broader Context of India-US Trade Relations and Tariffs
The revelation comes amidst protracted negotiations aimed at significantly boosting bilateral trade, with an initial goal to conclude the first phase by autumn 2025 and ultimately increase trade to $500 billion by 2030 from the current $191 billion. However, the trade relationship has been strained by the Trump administration's imposition of 50% tariffs on Indian goods. This includes a specific 25% levy linked to India's ongoing purchases of Russian oil, a point of contention amid geopolitical tensions. Trump has reportedly warned that these tariffs could escalate further if India does not curb its Russian oil imports. India has characterized the U.S. actions as 'unfair, unjustified and unreasonable.' Analysts suggest that New Delhi's negotiating style may not align with Trump's 'mercurial dealmaking style,' with some Indian officials reportedly concerned about the political implications of a one-sided conversation.
6 Comments
Katchuka
US bullying tactics, pure and simple. No wonder it failed.
KittyKat
While direct communication from leaders is vital for high-stakes deals, blaming a single missed call seems to oversimplify the complex geopolitical and economic factors at play. The existing tariffs and India's concerns about them clearly contributed significantly.
Loubianka
This is just political spin from the US side. Don't buy it.
Kyle Broflovski
The US certainly has a right to prioritize its economic interests and seek direct engagement from partners. But, framing the entire failure of a major trade deal on one leader's phone call ignores the deep-seated disagreements on tariffs and the broader strategic considerations for both nations.
ZmeeLove
Lutnick's account sounds credible. India's playing games.
Muchacho
Some leaders need to be direct. No call, no deal, simple.