U.S.-India Trade Negotiations Stagnate Following Modi's Missed Call to Trump

Post by : Mina Rahman

The anticipated trade agreement between the United States and India faces a crucial setback, as U.S. Commerce Secretary Howard Lutnick indicated that Prime Minister Narendra Modi’s unwillingness to directly call President Donald Trump played a pivotal role in the ongoing delays.

In a recent podcast appearance, Lutnick stated that the U.S. was eager to wrap up the deal and had urged Modi to personally reach out to Trump to finalize negotiations. However, Lutnick noted that India appeared “uncomfortable” with this approach, resulting in no communication taking place.

This announcement comes in the wake of President Trump voicing his concerns over India's continued acquisition of Russian oil, warning that the U.S. might impose higher tariffs on Indian imports "very quickly." The ongoing trade discussions have seen six rounds of negotiations aimed at addressing the longstanding 50% tariffs on Indian goods entering the U.S. market.

Lutnick pointed out that while the U.S. has effectively completed trade agreements with other Asian nations, including Indonesia, the Philippines, and Vietnam, progress with India remains stalled. He remarked that delays have resulted in higher tariff rates being finalized in those other agreements, complicating the negotiations with India.

When India later expressed interest in resuming discussions, Lutnick underscored the hesitation, saying, “I said, ready for what?” suggesting that India was not entirely prepared to advance the talks.

This situation highlights the multifaceted dynamics of U.S.-India trade relations, where geopolitical considerations, tariff conflicts, and diplomatic interactions significantly impact the speed and results of negotiations.