7 months ago
India-US Trade Deal Stalls Amid Disputes
The US and India have been trying to make a trade deal for a long time.
The US says the deal didn't happen because India's Prime Minister, Narendra Modi, didn't call US President Donald Trump.
But India says this isn't true and that they have talked on the phone many times.
The US has also proposed a new rule that could make it very expensive for countries like India to buy oil from Russia.
India says it needs affordable energy and is watching what happens.
Both countries want to make a deal, but they have different ideas about how to do it.
The US claims the India-US trade deal stalled because PM Modi did not call President Trump to finalize it.
India rejects this claim, stating that the characterization of the discussions is 'not accurate' and that Modi and Trump have spoken on eight occasions.
The US has completed trade deals with several other countries, including Japan, Europe, Korea, Indonesia, the Philippines, and Vietnam.
India emphasizes its need for 'affordable energy' and is monitoring the US sanctions bill that could impose tariffs up to 500% on countries buying Russian oil.
Both countries remain interested in a mutually beneficial trade deal and look forward to concluding it.
- Who
- US Commerce Secretary Howard Lutnick, Indian Prime Minister Narendra Modi, US President Donald Trump, MEA Spokesperson Randhir Jaiswal
- What
- Stalled India-US trade deal and potential US sanctions on countries buying Russian oil
- Where
- United States and India
- When
- Ongoing negotiations, recent comments made on January 9, 2026
- Why
- Disagreement over the reason for the stalled trade deal and differing perspectives on US sanctions on Russian oil
US Perspective
Indian Perspective
Reason for Stalled Trade Deal
US Perspective
US Commerce Secretary Howard Lutnick claims the deal stalled because Indian PM Narendra Modi did not call US President Donald Trump to finalize it.
Indian Perspective
India's Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal states that the characterization of the discussions is 'not accurate' and that the two leaders have spoken on eight occasions.
US Sanctions on Russian Oil
US Perspective
The US has approved a Russia Sanctions Bill that could impose tariffs up to 500% on countries buying Russian oil, potentially affecting India.
Indian Perspective
India emphasizes its need for 'affordable energy' and states it is monitoring the developments closely, driven by energy security needs and market realities.
Key facts
- US Commerce Secretary
- Howard Lutnick
- Indian Prime Minister
- Narendra Modi
- US President
- Donald Trump
- Trade Deals Completed by US
- Japan, Europe, Korea, Indonesia, Philippines, Vietnam
- Negotiation Rounds
- Multiple rounds since February 13, 2025
- Phone Calls Between Modi and Trump
- 8 occasions in 2025
- Proposed US Tariffs on Russian Oil Buyers
- Up to 500%
- India's Population
- 1.4 billion
Timeline
Trade spat over farm goods, car taxes stalls Modi-Trump call by July 9 deadline.
No progress in talks leads Modi to hesitate dialing Trump.
Previous tariff tussle likely colors Modi's decision.
No India-US trade deal as Modi holds off on Trump call.
Quotes
Howard Lutnick
U.S. Commerce Secretary
“A bilateral trade deal failed to materialise because India’s Prime Minister did not personally call Trump.”
indianexpress.com
Indian government
Government of India
“The remarks are 'not accurate'.”
indianexpress.com
Sources
'Modi didn't call': Howard Lutnick's big claim on India US trade deal deadlock, says THIS on America
'Trade deal didn't happen because Modi didn't call Trump'
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PM Modi & Trump spoke 8 times in 2025: MEA responds to Lutnick’s India-US trade deal claim
Trump must be the closer, says Lutnick. Is that how US trade deals are sealed?
‘Inaccurate’: India rejects Lutnick claim on stalled US trade deal, flags concern over Minneapolis shooting
India rebuts Trump aide's 'Modi didn't call' claim; says...
'Not Accurate': MEA Disputes US Commerce Secretary's Statement On Trade Deal
India reacts to US' 500% tariffs bill for buying Russian oil
Modi And Trump Held Eight Conversations In 2025 Amid India-US Trade Talks: MEA
‘Spoke 8 times in 2025’: India rejects Trump aide’s claim that PM Modi did not call on trade deal
‘India proritising affordable energy’: MEA on Trump’s 500% Tariffs Bill in US Congress
DC Edit | New Threats To Rupture US Ties?
Not accurate: India rejects Lutnick’s remarks that trade deal stalled as Modi didn’t dial Trump
Rush Hour: India says US official’s remark on trade talks inaccurate, TMC MPs detained and more
India–US trade deal: Tariffs remain the key hurdle, not Modi–Trump talks, says former assistant USTR
"Not Accurate": Centre On Trump Aide's 'PM Didn't Call' US President Remarks
MEA dismisses Trump aide’s claim, confirms eight Modi–Trump calls in 2025
PM Modi, Trump Spoke 8 Times in 2025: MEA
India rejects US’ inaccurate claims on failed trade deal
India refutes Howard Lutnick’s claim that India-US trade deal failed because PM Modi didn’t call president Trump
Howard Lutnick's comments on US-India talk are shallow and frivolous
India, Us Yet To Seal Trade Deal... India rebuts Trump aide's 'Modi didn't phone' claim
In estrangement, give & take reality: India must improve ties with neighbours, rethink US policy
Trade deals hinge on policy convergence, not leader-level symbolism, says GTRI after Lutnick remarks
Missed train on trade deal? India contests US commerce secretary’s claim on Modi-Trump call
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