India’s trade agreement with the United States was delayed after Prime Minister Narendra Modi did not make a telephone call to then US President Donald Trump to finalise negotiations, US Commerce Secretary Howard Lutnick said on Friday.
According to Lutnick, trade talks collapsed last year, after which Trump doubled tariffs on Indian goods to 50% in August—the highest rate imposed on any country. This included a 25% levy imposed in retaliation for India’s continued purchases of Russian oil.
“It’s all set up and you have got to have Modi call the President. And they were uncomfortable doing it,” Lutnick said in an interview on the All-In podcast, a US-based show hosted by four venture capitalists focusing on business and technology.
“So Modi didn’t call,” he added.
The remarks followed renewed pressure from Trump earlier this week, when he warned that tariffs on Indian goods could be increased further unless India reduces its imports of Russian oil.
The warning unsettled investors and pushed the Indian rupee to a record low, amid continued uncertainty over stalled bilateral trade negotiations.
Lutnick said India is still seeking a tariff rate that falls between those offered by Washington to Britain and Vietnam, which had previously been agreed upon but have since expired.
India’s Ministry of Commerce did not immediately respond to a request for comment on Lutnick’s remarks.
According to a Reuters report, New Delhi and Washington were close to finalising a trade deal last year, but a breakdown in communication led to its collapse. An Indian government official involved in the talks said Prime Minister Modi refrained from calling Trump out of concern that a one-sided conversation could place him in a difficult position.
Source: Reuters
