Why Did the US-India Trade Deal Stall? Insights from Commerce Secretary Howard Lutnick

The anticipated trade agreement between the US and India has hit a snag, according to US Commerce Secretary Howard Lutnick. He revealed that Prime Minister Narendra Modi's failure to communicate with President Donald Trump has contributed to the delay. Trump's recent dissatisfaction with India's Russian oil purchases has added pressure, with potential tariffs looming. As negotiations continue, Lutnick reflects on the US's successful trade deals with other nations and expresses confusion over India's readiness to finalize the agreement. This article delves into the complexities of international trade negotiations and the implications for both countries.

By Narendra Chaudhary Jan 9, 2026, 11:52 IST

Trade Negotiations Between the US and India

New York: According to US Commerce Secretary Howard Lutnick, the anticipated trade agreement with India has not materialized due to a lack of communication from Prime Minister Narendra Modi to President Donald Trump.

Lutnick's comments followed Trump's recent statement expressing dissatisfaction with India's ongoing purchases of Russian oil, hinting that the US might impose tariffs on India 'very quickly.'

This warning from the US President coincided with ongoing discussions regarding a bilateral trade pact.

To date, six rounds of negotiations have taken place, focusing on a framework to address the 50% tariffs on Indian exports to the US.

During a podcast on Thursday, Lutnick mentioned that he had urged Modi to reach out to Trump to finalize the agreement. However, he noted that India seemed 'uncomfortable' with this approach, resulting in Modi not making the call.

Lutnick highlighted that the US has successfully negotiated trade deals with countries like Indonesia, the Philippines, and Vietnam, and he had expected the agreement with India to be concluded prior to these.

He remarked, 'We completed deals with Indonesia, the Philippines, and Vietnam, assuming India would be finalized first. Now, the issue is that these agreements were made at a higher rate, and when India expressed readiness, I was left wondering, 'Ready for what?'