India-US Trade Deal in Limbo as Trump Aides' Comments Raise Concerns

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The fate of a potential India-US trade deal remains uncertain as comments from US President Donald Trump's aides have sparked concerns about the future of bilateral trade ties. The uncertainty comes nearly five months after tariffs on Indian exports to the US were doubled to 50%, with President Trump citing India's purchase of Russian oil as the reason. Trade negotiations between the two countries have been ongoing since March-April last year, but the process has been marred by controversy. US Commerce Secretary Howard Lutnick recently claimed that a potential trade deal fell through because Prime Minister Narendra Modi 'didn't call' President Trump to confirm the agreement. Lutnick also stated that the deal was supposed to be finalized before agreements with other countries like Indonesia, Vietnam, and the Philippines. However, the Indian government has rejected Lutnick's claims, calling them 'not accurate.' The External Affairs Ministry spokesperson, Randhir Jaiswal, stated that India remains open to a mutually beneficial trade deal. In a separate development, US Senator Lindsey Graham claimed that President Trump 'greenlit' a bill that could increase tariffs on India to 500%. The bill, which is still a proposed legislation, aims to impose 'at least 500% tariffs' on countries that engage in trade with Russia. The comments from Trump's aides have raised concerns about the future of India-US trade ties. However, the new US Ambassador to India, Sergio Gor, has expressed hope for a trade agreement between the two countries. Gor stated that India is 'no partner more essential than India' for the US and that the friendship between PM Modi and President Trump is 'very real.' External Affairs Minister S Jaishankar spoke to US Secretary of State Marco Rubio over the phone on Tuesday, discussing bilateral cooperation, including trade, critical minerals, nuclear energy, defense, and energy. Jaishankar described the conversation as 'good' and stated that the two would remain in touch on these and other issues. The Indian government has maintained that its energy sourcing is guided by market availability and the needs of the Indian consumer. The future of the India-US trade deal remains uncertain, but both countries appear to be open to negotiations.