Overview
- U.S. Commerce Secretary Howard Lutnick said on the All-In podcast that a leader-to-leader call from Prime Minister Narendra Modi to President Donald Trump was required to close the trade pact, which he says did not occur.
- India’s Ministry of External Affairs called that description “not accurate,” noting Modi and Trump spoke by phone eight times in 2025 and reaffirming India’s interest in a balanced, mutually beneficial agreement.
- Lutnick described a time-bound “staircase” strategy with a short deadline and said the U.S. moved ahead with Indonesia, the Philippines, and Vietnam at higher tariff rates, adding that the earlier terms discussed with India have expired.
- Talks have included six rounds focused on resolving steep U.S. duties, which were doubled in August 2025 to a combined 50% on many Indian goods, including a 25% levy tied to purchases of Russian oil.
- A newly approved Russia-sanctions law authorizes tariffs of up to 500% on imports from countries that keep buying Russian energy, and Trump has warned U.S. duties on India could rise very quickly.