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‘PM Modi Didn’t Call Trump’: Lutnick Explains Where India-US Trade Deal Got Stuck

Howard Lutnick said the India-US trade deal stalled as Modi did not call Trump, causing delays that led to higher tariff rates and affected deals with other Asia-Pacific nations.

  • Published January 09, 2026, Lutnick said on a podcast that the India–U.S. trade deal stalled because Prime Minister Narendra Modi did not personally call U.S. President Donald Trump.
  • Assuming India would finish first, the United States negotiated and announced deals with Indonesia, the Philippines and Vietnam while expecting the India–U.S. pact to conclude earlier.
  • Negotiators ended up agreeing at higher rates after Lutnick said `I have negotiated them at a higher rate`, and India later called back saying `Oh, okay, we are ready.`
  • The pact includes a framework to resolve the 50% tariffs on Indian goods entering America, and so far six rounds of negotiations have been held in the India–U.S. talks.
  • Amid tariff warnings, Trump warned he could raise tariffs `very quickly` amid disputes over India's Russian oil purchases, raising stakes in ongoing trade talks.
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A diplomatic controversy erupted after a surprising statement by the US Secretary of Commerce. Howard Lutnick claims that the trade negotiations between New Delhi and Washington failed because Prime Minister Narendra Modi would not have made the final phone call that Donald Trump considered essential to the agreement. This claim caused the shock in New Delhi. The Indian press largely turned him in derision. For its part, the Indian government br…

·Paris, France
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Moneycontrol broke the news in India on Friday, January 9, 2026.
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