"Modi didn't call": Trump aide's major assertion over the collapse of the India-US deal

According to Howard Lutnick, New Delhi was "on the wrong side of the see-saw" despite India and the US being so close to reaching an agreement.

An important close advisor to US President Donald Trump has made a significant allegation about why a potential trade agreement between the two nations failed, although trade talks between the US and India are still ongoing. According to US Commerce Secretary Howard Lutnick, he "set a deal up," but Prime Minister Narendra Modi "didn't call" Donald Trump, so it couldn't be finalized.

"It's all set up, but I said I gotta have Modi call the President...they were uncomfortable doing it, so Modi didn't call," Lutnick recalled the talks in a podcast interview with businessman Chamath Palihapitiya.

Lutnick added that although the US completed a number of agreements with nations like Indonesia, Vietnam, and the Philippines in the upcoming week, the agreement with India was scheduled to take place much earlier. "India was supposed to complete its contract before the other nations. Lutnick remarked, "I bargained with them at a higher rate."

Days after Trump threatened to raise the current tariffs on India if it didn't assist with the "Russian oil issue," the Trump advisor made these comments.

"India desired my happiness. Modi is a really nice man, and he was aware of my unhappiness. Making me happy was also crucial. Trump reportedly declared, "We can raise tariffs on them very quickly."

India's "no deadline" stance and 50% tariffs
Citing New Delhi's energy trade with Moscow, the US levied 50% tariffs on India in August of last year. Since then, the US government has been attempting to get India to halt its energy trade with Russia by using the high tariffs.

Nonetheless, India has consistently insisted that market conditions and Indian customer demands determine its energy agreements. Union Minister Piyush Goyal even made it clear back in October that striking a deal under duress was not an option.

India, according to Goyal, was amenable to talks but not timeframes. He had stated, "We are talking to the United States, of course, but we don't do deals in a hurry, with deadlines or with a gun on our head."

Does India have to pay 500% tariffs?
Given that US Senator Lindsey Graham has asserted that Donald Trump has approved a measure imposing penalties on Russia, a significant tariff increase appears to be imminent for India. The law calls for toughening sanctions against Moscow as well as its trading allies, such as India.

Trump "must" raise tariffs to "at least 500 percent" for "all goods and services imported into the United States from countries that knowingly engage in the exchange of Russian-origin uranium and petroleum products" under the "Sanctioning Russia Act of 2025."

By threatening Moscow's trading partners with high taxes, the measure seeks to put pressure on Russia to halt its offensive in Ukraine.