India Responds to Trump Aide's Claims on Trade Deal Stalemate

Sat Jan 10 2026 06:45:11 GMT+0200 (Eastern European Standard Time)

India rebuts US Commerce Secretary Howard Lutnick's assertion that a stalled trade deal with the US was due to Prime Minister Modi's lack of communication with President Trump, reinforcing their commitment to bilateral negotiations.

India has defended its stance regarding a stalled trade deal with the United States, countering claims from US Commerce Secretary Howard Lutnick that the impasse was due to Prime Minister Modi's failure to call President Trump. As the two nations resume negotiations, key sticking points remain, particularly in agriculture and tariffs, while both sides reaffirm their dedication to reaching a mutually beneficial agreement.

India has pushed back at US Commerce Secretary Howard Lutnick's claims that the trade deal between the countries stalled because Prime Minister Narendra Modi did not call President Donald Trump.

Trump imposed 50% tariffs on Indian goods in August, including a penalty for buying Russian oil, after the talks stalled.

Both sides are now back to negotiating a deal but there is no clarity on when it will materialize and several informal deadlines have been missed.

Key sticking points remain even now - including agriculture. Washington has been pushing for greater access to India's farm sector but Delhi has fiercely protected it.

However, Lutnick suggested the deal was close to completion at the start. It was all set up. I said [to the Indian side] you got to have Modi call the president. They were uncomfortable doing it, so Modi didn't call, Lutnick said.

The White House has not yet commented on Lutnick's assertions.

India, however, said on Friday that the characterization of the discussions in Lutnick's remarks was not accurate. Foreign ministry spokesperson Randhir Jaiswal stated that both countries committed to negotiating a bilateral trade agreement back in February last year, engaging in multiple discussions since then.

He added that Modi and Trump had eight phone conversations last year covering various aspects of the partnership.

Speaking on the All-In Podcast, Lutnick discussed Trump's negotiation style, emphasizing the importance of the initial communication, which he argued was lacking in this case.

He noted that India was second only to the UK in trade deal negotiations with the US and that certain timeframes for closing the deal were not met.

Despite the ongoing challenges, India's exports to the US increased over 22% in November, revealing resilience despite the imposed tariffs and strain in bilateral relations.

While the US continues to place significant pressures, notably concerning oil purchases from Russia, India remains focused on its energy strategy, reflecting its broader national interests in the negotiations.

The evolving relationship between Modi and Trump is noted to have deteriorated recently, with conflicting claims regarding mediation with Pakistan and unresolved disputes impacting diplomatic dynamics.