Washington: The long-discussed trade agreement between India and the United States failed to materialise because Prime Minister Narendra Modi did not personally reach out to then US President Donald Trump, according to US Commerce Secretary Howard Lutnick.
Speaking on the All-In Podcast on Thursday, Lutnick offered a behind-the-scenes account of how negotiations unfolded — and eventually stalled — despite initial momentum and public signals from Washington that India could be next in line for a deal.
Recounting the US approach to trade talks, Lutnick said the Trump administration followed a strict, time-bound strategy. After finalising an agreement with the United Kingdom, other countries were told they had limited time to close their deals. “The process worked like a staircase,” he explained, adding that the first country to conclude talks always received the most favourable terms. “If you’re not first, you don’t get the best deal.”
According to Lutnick, India was repeatedly mentioned by Trump as a likely next partner after the UK. Formal discussions were underway, and New Delhi was informed it had a narrow window — described as “three Fridays” — to complete the process.
However, Lutnick stressed that while technical negotiations were handled by his team, the final step always rested with Trump himself. “He’s the closer,” Lutnick said, underlining that a direct leader-to-leader conversation was essential. “I told them everything was ready — Modi just needed to call the President.”
That call, Lutnick claimed, never happened. He said Indian officials appeared hesitant about initiating the conversation, and when the deadline passed, Washington moved on. Soon after, the US announced trade deals with countries such as Indonesia, the Philippines and Vietnam.
The Commerce Secretary said the US had expected India to finalise its agreement before those nations, but delays proved costly. By the time India indicated it was ready to proceed, the situation had changed. “The train had already left the station,” he said, adding that newer agreements were concluded at higher tariff levels.
Using a metaphor, Lutnick described India as ending up “on the wrong side of the seesaw,” as other countries kept advancing in the queue. While he maintained that a deal with India was still possible, he suggested it would no longer be on the earlier terms discussed.
“I wanted India’s deal to fall between the UK and Vietnam,” he said. “That was then, not now.”
Lutnick acknowledged that domestic political processes often slow down trade negotiations, noting that approvals through parliaments and internal consultations make such agreements complex and time-consuming.
His comments come shortly after Donald Trump publicly expressed displeasure over India’s continued purchase of Russian oil and warned that tariffs on Indian goods could be increased “very quickly.” The remarks surfaced even as New Delhi and Washington continued negotiations on a bilateral trade pact.
So far, six rounds of talks have been completed, focusing on a framework agreement that aims to address tariffs of up to 50 per cent on Indian exports to the US. Despite the setbacks, officials on both sides have indicated that discussions are ongoing, though the path forward may be more challenging than initially anticipated.
