India-US Trade Deal Falls Through: Modi's Silence Leaves India Behind

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The India-US trade deal has hit a roadblock, with US Commerce Secretary Howard Lutnick attributing the failure to a lack of direct communication between Prime Minister Narendra Modi and President Donald Trump. Lutnick revealed on a recent podcast that New Delhi's reluctance to have Modi call Trump directly hindered the deal's completion. According to Lutnick, the Trump administration had been keen to sign an early agreement with India, but the Indian side missed the deadline set in May 2025. The administration had offered a 'staircase' approach, where countries that signed deals earlier would receive lower tariff rates, while those who signed later would face higher rates. However, as countries like Vietnam, Indonesia, and the Philippines secured deals, India found itself at the back of the line. Lutnick explained that the deals that were negotiated earlier were done at higher tariff rates, making it difficult for India to secure a favorable deal. The trade talks between India and the US began in February, with several rounds of in-person talks taking place in 2025. Despite the efforts, a deal could not be reached, and the Trump administration's 50% tariff on India, including a 25% tariff penalty for purchasing Russian energy, remains in place. Lutnick's comments have sparked concern among Indian officials, who are yet to respond to the allegations. The fate of the India-US trade deal remains uncertain, with Lutnick suggesting that India will need to be proactive to secure a favorable agreement in the future.