“The India-US trade agreement was stalled because Prime Minister Modi did not call Trump”

US Commerce Secretary Howard Lutnick’s claim

U.S. Commerce Secretary Howard Lutnick

Washington (US) – “The India–United States trade agreement did not stall due to any strategic or policy disagreements, but solely because Prime Minister Narendra Modi did not personally make a phone call to US President Donald Trump,” claimed U.S. Commerce Secretary Howard Lutnick in a recent interview. He said that Trump’s ego was hurt.

Elaborating further, Lutnick stated:

1. The trade agreement between the two nations was at an advanced, near-final stage. India had been given a deadline of ‘three Fridays’ to conclude the discussions. President Trump personally wished to finalise the deal; however, as Prime Minister Modi did not directly speak with him over the phone, the agreement failed to move forward.

2. Consequently, the US proceeded to finalize trade agreements with Indonesia, Philippines, and Vietnam. In contrast, shortly after British Prime Minister Keir Starmer spoke to Trump over the phone, a trade agreement between the US and the United Kingdom was swiftly concluded.

3. The terms earlier proposed to India will no longer remain valid. If a trade agreement is reached in the future, India may be compelled to accept new and more stringent conditions.

Meanwhile, citing India’s purchase of crude oil from Russia, the US has imposed a total import duty of 50% on Indian goods. India has strongly opposed this decision, calling it unjustified, and has demanded immediate withdrawal of the duty. Although discussions between the two countries on this issue are ongoing, the trade agreement continues to remain in abeyance.

Editorial Perspective

Does Lutnick believe that Trump can arbitrarily impose a 50% import duty on India and India will fawn over him to please ? Given Trump’s unpredictable temperament, India must proceed with utmost caution and strategic wisdom in this matter.