Post by : Meena Ariff

The much-anticipated bilateral trade agreement between the United States and India has hit a significant roadblock, with U.S. Commerce Secretary Howard Lutnick revealing that Prime Minister Narendra Modi’s reluctance to engage directly with President Donald Trump contributed to the delay.

Speaking on a recent podcast, Lutnick explained that the U.S. had been eager to finalize the deal and had requested Prime Minister Modi to personally call President Trump to close the negotiations. However, according to Lutnick, India felt “uncomfortable” with the proposal, and the call never took place.

This revelation comes shortly after President Trump expressed dissatisfaction over India's ongoing purchases of Russian oil, warning that the U.S. could impose higher tariffs on Indian imports "very quickly." The trade discussions, which have included six rounds of negotiations, aim to resolve the longstanding issue of the 50% tariffs imposed on Indian goods entering the American market.

Lutnick also highlighted that while the U.S. successfully concluded trade agreements with other Asian countries such as Indonesia, the Philippines, and Vietnam, the India deal lagged behind. He noted that the delayed progress caused the tariffs in those other deals to be finalized at higher rates, complicating negotiations with India.

When India later indicated readiness to resume talks, Lutnick remarked on their hesitation, stating, “I said, ready for what?” implying that India was not fully prepared to move forward.

This development underscores the complexities in U.S.-India trade relations, where geopolitical factors, tariff disputes, and diplomatic communications continue to influence the pace and outcome of negotiations.