Modi didn't call Trump: Lutnick on why India-US trade deal didn't happen

US Commerce Secretary Howard Lutnick has claimed that the India-US trade deal didn't happen because Prime Minister Narendra Modi did not call US President Donald Trump.

Speaking at All-In Podcast, Lutnick said, "I had set the whole deal up. But let's be clear, it's his (Trump's) deal. He is the closer. He does it. It's all set up; you've got to have Modi call the President. They (India) were uncomfortable doing it. So, Modi didn't call."

US expected India trade deal to close before others

Lutnick also added that the US had expected the trade deal with India to be closed before others. "That Friday left, in the next week, we did Indonesia, the Philippines, Vietnam, and we announced a whole bunch of deals. Because we negotiated with them and assumed that India would be done before them, and negotiated with them at a higher rate."


"So now the problem is that the deals came out at a higher rate, and then India says we are ready. I said ready for what... The train that left the station 3 weeks ago," he added.

Trump backs Bill proposing 500% tariffs

Trump has backed a Bill that threatens to raise tariffs on countries buying energy products, including oil, from Russia, to at least 500 per cent. If approved, the Bill will add pressure on countries like India, China and Brazil, which continue to purchase Russian oil despite US sanctions.

According to US Senator Lindsey Graham, among Trump’s closest congressional allies in the Senate, the US President has approved a bipartisan Bill titled the 'Sanctioning of Russia Act 2025'. Although the Bill has not yet been passed, Graham said it could be brought up for a bipartisan vote as early as next week.

India-US relations remain turbulent

Relations between India and the US have been turbulent since the imposition of 50 per cent tariffs, including a 25 per cent penalty on purchases of Russian crude, which came into effect in August 2025.

Despite the strain, both US President Donald Trump and Indian Prime Minister Narendra Modi have repeatedly emphasised that they continue to share a strong friendship. However, no trade deal has been reached so far.