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Missed Call Delays US–India Trade Deal
(MENAFN) A proposed trade agreement between the United States and India was postponed after Indian Prime Minister Narendra Modi did not place a phone call to U.S. President Donald Trump, according to U.S. Commerce Secretary Howard Lutnick.
Lutnick’s comments came amid lingering tensions following New Delhi and Washington’s failure to finalize a trade pact last year, a breakdown that ultimately led the Trump administration to raise tariffs on Indian exports.
Speaking on a podcast on Thursday, Lutnick said the agreement was essentially ready, stressing that President Trump typically personally finalizes such deals.
He recalled telling negotiators that a direct call from Modi to Trump was necessary to move the process forward, describing it as the final step in closing the agreement.
However, Lutnick claimed that Indian officials were uneasy with the idea, and as a result, the call never took place.
“They were uncomfortable doing it, so Modi didn’t call,” he said, suggesting this hesitation stalled progress.
Subsequently, the Trump administration imposed tariffs of up to 50 percent on Indian imports. The move was partly justified by India’s continued purchases of Russian oil despite the ongoing war in Ukraine.
Efforts to revive negotiations resumed in September, when U.S. Assistant Trade Representative Brendan Lynch traveled to New Delhi for meetings with Indian counterparts.
Despite this renewed engagement, India on Friday rejected Lutnick’s version of events, disputing his account of why the deal failed to materialize.
Lutnick’s comments came amid lingering tensions following New Delhi and Washington’s failure to finalize a trade pact last year, a breakdown that ultimately led the Trump administration to raise tariffs on Indian exports.
Speaking on a podcast on Thursday, Lutnick said the agreement was essentially ready, stressing that President Trump typically personally finalizes such deals.
He recalled telling negotiators that a direct call from Modi to Trump was necessary to move the process forward, describing it as the final step in closing the agreement.
However, Lutnick claimed that Indian officials were uneasy with the idea, and as a result, the call never took place.
“They were uncomfortable doing it, so Modi didn’t call,” he said, suggesting this hesitation stalled progress.
Subsequently, the Trump administration imposed tariffs of up to 50 percent on Indian imports. The move was partly justified by India’s continued purchases of Russian oil despite the ongoing war in Ukraine.
Efforts to revive negotiations resumed in September, when U.S. Assistant Trade Representative Brendan Lynch traveled to New Delhi for meetings with Indian counterparts.
Despite this renewed engagement, India on Friday rejected Lutnick’s version of events, disputing his account of why the deal failed to materialize.
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