Top Trump official makes big claim on why India-US deal did not happen

Commerce Secretary Lutnick has said that Trump was waiting for a telephone call from Modi to finalize the agreement

A top member of the Trump administration has said an India-US trade deal did not materialize because Prime Minister Narendra Modi did not heed Washington’s demand to call the US president to finalize it.

US Commerce Secretary Howard Lutnick made that claim in the ‘All-In Podcast’ aired on Thursday. 

Lutnick was responding to a query on what was holding up the agreement with India after several rounds of negotiations.

“I had set the whole deal up. But let’s be clear. It is his deal. He is the closer. He does it. But you had to have Modi call President Trump,” Lutnick said, claiming he conveyed this message to the Indian side.

Trade Talks Stalled After ‘Modi Didn’t Call,’ Lutnick Says

US commerce sec Howard Lutnick said the deal failed after Trump did not receive a call from PM Modi, adding Washington moved ahead with other agreements instead. pic.twitter.com/6Nmk3rWGtS

— RT_India (@RT_India_news) January 9, 2026

“They (India) were uncomfortable with it. So, Modi didn’t call,” the secretary said.

The Indian Foreign Ministry has issued a rebuttal to Lutnick’s comments.

“The characterization of these discussions in the reported remarks is not accurate,” spokesman Randhir Jaiswal said on Friday.

He added that India “remains interested in a mutually beneficial trade deal between two complementary economies and looks forward to concluding it.”

India and the US have held six rounds of negotiations on reaching a trade deal. The US imposed a 50% tariff on India in August, half of which is a penalty for the South Asian nation’s purchases of Russian oil.

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Lutnick’s comments come a day after reports that Trump is backing new Russia sanctions legislation in the US Congress targeting India and China. 

Trump has repeatedly hinted at the prospect of raising tariffs on India.

New Delhi has said its oil purchases are determined by national interests, though key Indian refiners have temporarily halted new orders and sought alternative supplies in response to US sanctions.

The US is India’s largest export market and trading partner.

India signed three trade deals with the UK, Oman, and New Zealand in 2025. 

New Delhi is also pursuing trade pacts with a dozen other countries or trading blocs, including the Eurasian Economic Union.