Why did tariffs increase, why did the deal stop? PM Modi did not call Trump – US gave shocking reason. Pm Modi Trump Call Us India Trade Deal Delay Tariff Explained

India US Trade Deal: Why did the much awaited India-US Trade Deal between India and America not happen? Did the lack of a phone call really stop a trade deal worth billions of dollars? The recent statement of US Commerce Secretary Howard Lutnick has made this entire issue mysterious and controversial. After his claim, not only did tariffs increase, but many questions have also been raised on India-US trade relations.

Did the deal stop because PM Modi did not call Trump?

In a podcast interview, US Commerce Secretary Howard Latnick claimed that the trade deal between India and the US could not be completed because Prime Minister Narendra Modi did not call the then US President Donald Trump. According to Latnik, the deal was almost finalized and only final political confirmation remained. He says Trump wanted to personally complete the deal, but when there was no direct contact from India within the stipulated time frame, the US went ahead and made agreements with other Asian countries.

Was India given a deadline for a trade deal?

According to Latnik, India was given a clear deadline to finalize the trade deal. America was hopeful that India would complete the deal before countries like Vietnam and Indonesia. In this hope, relatively high tariff conditions were kept for India in the initial negotiations. But when India could not respond within the stipulated time and later returned for talks, by then America had already made agreements with many other countries.

BIG BREAKING: India trade deal isn’t done because PM Modi did not call Trump, claims US Commerce Secretary Lutnick

“I set the deal up. But you had to have Modi call President Trump. They (India) were uncomfortable with it. So Modi didn’t call.” pic.twitter.com/gFiUGGaJRl

— Shashank Matteo (@MattooShashank) January 9, 2026

How much truth is there in Latnik’s claim?

Today’s situation is that America faces about 50% tariff on India’s exports. Latnik claims that countries that agreed to the deal early got the benefit of lower tariffs. However, this argument is also questionable because countries like Vietnam have faced high tariffs despite making quick deals. Was the US policy really time-bound, or was a tough stance already adopted towards India?

Did America deliberately set difficult conditions for India?

If we understand in simple words, America talked to India with the assumption that India would reach an agreement soon. For this reason the tariff conditions were kept more strict. But when India did not agree to those conditions and took time, America’s strategy changed. Likening it to a “missed train,” Latnik said that by the time India was ready two-three weeks later, other countries were already ahead.

Can India-US Trade Deal start again?

This entire incident has made it clear that India US Trade Talks depend not only on economic but also on political and diplomatic balance. Now the big question is whether the two countries will come to the negotiating table again in the future, or has this opportunity passed forever? At present, the American statement has increased the suspense and started a new debate on India-US trade relations.