Key Points:
- Lutnick claims trade framework was ready but Modi didn’t call Trump to finalize it
- US withdrew from agreement not due to policy differences but Modi’s reluctance to contact Trump
- Trump’s ego was hurt by the lack of phone call, leading to threats of increased tariffs against India
- US has moved on to trade agreements with Indonesia, Philippines, and Vietnam
- Lutnick previously stated in September 2025 that India would stop buying Russian oil and apologize to Trump
- India officials remind US of previously agreed deal, but Lutnick says US is no longer considering it
- This is not the first time Lutnick has made controversial statements against India regarding the trade deal
US Commerce Secretary Howard Lutnick has made a significant revelation regarding the India-US trade agreement. According to him, the agreement has not been finalized because Prime Minister Narendra Modi did not speak directly with US President Donald Trump on the phone. Lutnick stated that the framework of the entire deal was already in place, but Modi needed to contact Trump to finalize it.
Lutnick further revealed that the terms of the trade agreement were almost finalized, but the US has now decided to withdraw from that agreement. He clarified that this was not due to any policy differences, but rather Modi’s reluctance to contact Trump. As a result, the US proceeded with trade agreements with other countries such as Indonesia, the Philippines, and Vietnam, while the agreement with India fell through.
#BREAKING: US Commerce Secretary Howard Lutnick says the India–US trade deal fell through because Prime Minister Modi did not call President Trump.
— Aditya Raj Kaul (@AdityaRajKaul) January 9, 2026
“I set the deal up. But Modi had to call President Trump. They were uncomfortable with it, so Modi didn’t call.” pic.twitter.com/5PpiGjVEF4
Trump’s Ego Hurt by Lack of Phone Call
Furthermore, Lutnick also stated that Trump’s ego was a factor in this matter. When Modi did not call Trump, Trump’s ego was hurt, and this affected the trade agreement. Trump even threatened to increase tariffs against India, which caused significant losses for India. Now, the US is not even considering the trade agreement, having backed away from the terms it had previously agreed upon.
When asked about the status of the trade deal with India, Lutnick said, “India still remembers the deal we agreed upon. Indian officials tell me, ‘You agreed to this deal.’ I replied to them, ‘Yes, I remember agreeing to it then, but we are not considering it now.'”
Statements Against India Continue
This is not the first time Howard Lutnick has made such statements against India regarding the trade deal. Earlier, in September 2025, he claimed that India would stop buying Russian oil and apologize to President Trump to finalize the trade deal. However, India has not yet done anything of the sort, which has angered US officials.
The repeated controversial statements from the US Commerce Secretary have strained diplomatic relations, with India maintaining its position on strategic autonomy regarding Russian oil purchases while seeking to strengthen trade ties with the United States. The collapse of the trade agreement marks a significant setback in bilateral economic relations, particularly as the US shifts its focus to other Southeast Asian nations for trade partnerships.
