US commerce secretary Howard Lutnick made a big statement over why the India-US trade deal is not sealed yet, claiming that it was due to PM Modi not calling Trump. Speaking at the All-In Podcast, hosted by Chamath Palihapitiya, Lutnick said, “Let’s be clear, it’s his deal. He’s the closer. He does the deal. So I said, you got to have Modi. It’s all set up. You have to have Modi…they were uncomfortable doing it.”“So Modi didn’t call,” he claimed.This statement comes after US President Donald Trump, on Thursday, approved a bill that can impose at least 500% tariffs for countries buying Russian oil, aiming to “punish them.” US senator Lindsey Graham said that the bill would give US tremendous leverage against countries like China, India and Brazil to incentivize them to stop buying the cheap Russian oil.

India-US trade deal

In February, leaders from both countries directed officials to begin negotiations, setting an initial goal of completing the first phase by autumn 2025. However the deal still remains stalled with India’s trade with Russia remaining a major flashpoint. Back in August, US imposed additional tariffs on Indian imports to the country alleging that New Delhi’s purchase of Russian oil was fueling Moscow’s ‘war machine’ in Ukraine. Since then total tariffs on Indian goods stand at 50%, including 25% of additional tariffs and 25% of Trump’s reciprocal tariffs.Also read: How 500% tariff could upend $120 billion India-US trade – explainedSince then, two nations have held many rounds of trade talks with the meeting back from December 10 to December 12, when US officials visited New Delhi. India and the US are engaged in parallel negotiations, aiming to develop a framework trade deal to address tariff issues, and focus on a comprehensive trade agreement. The proposed agreement aims to more than double bilateral trade to $500 billion by 2030 from the current $191 billion.

India-US trade figures

The US remained India’s largest trading partner for the fourth consecutive year in 2024–25, with bilateral trade standing at $131.84 billion, of which $86.5 billion came from Indian exports. The American market accounts for roughly 18% of India’s total goods exports, 6.22% of its imports, and 10.73% of overall merchandise trade.Exporters have highlighted the need to finalise the agreement, noting that India’s merchandise exports to the US fell for a second straight month in October, declining 8.58% to $6.3 billion, largely due to the steep tariffs imposed by Washington.