US Commerce Sec Drops Bombshell On India-US Trade Deal: ‘It Couldn’t Happen Because Modi Didn’t Call Trump’

India-US Trade Deal: Amid fading expectations of an India-United States trade deal, the United States Commerce Secretary, Howard Lutnick, has recently explained why the two nations couldn't strike a trade agreement.

The US announced several deals with Indonesia, the Philippines, Vietnam, and others. But there was no deal with India because Prime Minister Narendra Moidi didn't call the US President Donald Trump, said US Commerce Sec in the All-In Podcast, hosted by four Silicon Valley venture capitalists and entrepreneurs

'US-India Trade Deal Couldn't Happen Because...'

"Lets be clear, its his (Trump's) deal. He is the closer. He does it. Its all set up, you got to have Modi, call the President. They were uncomfortable doing it. So, Modi didn't call. That Friday left, in the next week we did Indonesia, the Philippines, Vietnam, we announced a whole bunch of deals. Because we negotiated with them and assumed that India is going to be done before them and negotiated with them at a higher rate. So now the problem is, that the deals came out at a higher rate and then India claws back and says oh okay, we are ready. I said ready for what?!" stated US Secretary of Commerce in the podcast.

500% US Tariffs Fear

United States Commerce Secretary, Howard Lutnick's statement on India tariffs came as the US President Trump approved a new bill that allows a whopping 500% levies on countries that continue to trade with Russia. The bill, 'Sanctioning Russia Act of 2025,' threatens a minimum of 500% tariffs on countries that knowingly engage in the exchange.

The bill requires further approval from the Senate and, once implemented, may lead to heavy levies on countries like India and Russia, which continue to trade 'cheap oil' with Russia.

The steps will also be cancelled if any agreed peace deal is broken and a fresh attack on Ukraine begins, or if any plan is launched to remove, weaken, or undermine the functioning authority of the Ukrainian government.

US Tariffs on India

Indian imports currently attract a 50% tariff from the US, including textiles, steel, and other goods. According to experts, India has significantly reduced its trade from Russia and if the 500% tariff will come into effect then it would effectively end India's annual goods exports to the US.