Mazaj News (Web Desk) US Commerce Secretary Howard Lutnick said on Friday that India’s trade agreement with the United States was delayed because Prime Minister Narendra Modi did not make a phone call to President Donald Trump to finalize the deal under discussion.
Trade negotiations broke down last year and President Trump later raised tariffs on Indian goods to fifty percent in August which became the highest rate in the world. This included a twenty five percent duty imposed in response to India’s purchase of Russian oil.
Speaking on the All In podcast Lutnick said everything was ready but Modi needed to call the President. He said Indian officials were uncomfortable with this step and as a result the call never happened.
His remarks came after Trump increased pressure this week by warning that tariffs could be raised further unless India reduces its imports of Russian oil.
That warning pushed the Indian rupee to a record low and unsettled investors who are still waiting for progress on a bilateral trade deal that has yet to materialize.
Lutnick added that India is still seeking a tariff rate that falls between the earlier US offers made to Britain and Vietnam but those offers are no longer valid.
India’s trade ministry did not respond immediately to a request for comment on Lutnicks statement.
According to Reuters New Delhi and Washington were close to reaching a trade agreement last year but talks collapsed due to communication problems.
An Indian government official involved in the negotiations said Modi could not place the call because there were concerns it could turn into a one sided discussion and put him under pressure.