Story perspectives

India-U.S. Trade Deal Fails Over Lack of Communication

1/9/2026

Summary

Story summary

U.S. Secretary of Commerce Howard Lutnick says the India–U.S. trade deal collapsed because Modi did not call President Donald Trump.
Lutnick says Modi's direct communication was essential.
The United States moved forward with trade deals with Indonesia, the Philippines, and Vietnam.
As a result, the terms initially discussed are no longer available.
Lutnick warns India could face tariffs up to 500% under a sanctions bill targeting buyers of Russian oil.

History

Historical Context

The U.S. withdrew from the Trans-Pacific Partnership in 2019, reshaping trade dynamics. By 2025, bilateral trade with India reached $142 billion, but tensions escalated as President Trump imposed tariffs up to 50% on Indian goods due to its oil trade with Russia. This situation underscores the fragile nature of U.S.-India relations and the potential economic repercussions for India.

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Story summary

U.S. Secretary of Commerce Howard Lutnick says the India–U.S. trade deal collapsed because Modi did not call President Donald Trump.
Lutnick says Modi's direct communication was essential.
The United States moved forward with trade deals with Indonesia, the Philippines, and Vietnam.
As a result, the terms initially discussed are no longer available.
Lutnick warns India could face tariffs up to 500% under a sanctions bill targeting buyers of Russian oil.

1 / 2