'Modi Didn't Call Trump': Lutnick's Bold Claim On India-US Trade Deal Collapse

US Commerce Secretary Howard Lutnick, a key aide to President Trump, made a stark revelation, Indian PM Narendra Modi 'didn't call Trump', stalling the possible trade deal amid the looming 500% tarrif treat.

While the India-US trade negotiations are still in progress, US Commerce Secretary Howard Lutnick’s bold revelation amid the Trade negotiations sparked a major diplomatic discussion.

US Commerce Secretary Howard Lutnick said he had "set a deal up," but it collapsed because Indian Prime Minister Narendra Modi ‘refused’ to call US President Donald Trump.
This stark claim highlights friction over tariffs and Russian oil. The revelation fuels speculation on stalled bilateral ties as of January 2026.

"It's all set up, but I said I gotta have Modi call the President...they were uncomfortable doing it, so Modi didn't call," Lutnick said during a podcast with American venture capitalist Chamath Palihapitiya, as part of the 'All-In Podcast', detailing the breakdown in India-US trade negotiations.

US-India relations have seen a significant decline following the announcement of the US President’s trade tariffs. US-India tariff tensions escalated in 2025 under President Trump's reciprocal trade policies, starting with announcements in April and imposing up to 50% duties by August, over reciprocal duties and Russian oil disputes.

The US has repeatedly accused India of funding Russia's Ukraine aggression by buying cheap Russian oil, fueling Moscow's war machine amid soaring imports since 2022, prompting tariffs and sanctions threats from the US.

The trade negotiations between US-India underway, Lutnick also stated in the Podcast that “India and the US were very close to finalising a deal, but New Delhi was on the wrong side of the see-saw”.

He also revealed that the US finalised trade pacts with Indonesia, Vietnam, and the Philippines, yet India's agreement was set to finalise ahead of them. "India's was gonna be done before them...I negotiated with them at a higher rate," Lutnick said, highlighting the missed opportunity amid the India-US trade standoffs.

The 500% Tarrif Threat?

Lutnick’s claim comes after US President Trump has recently approved advancing the bipartisan ‘Sanctioning Russia Act of 2025’, authorising up to 500% tariffs on “those countries who buy cheap Russian oil fueling Putin’s war machine,” said Lindsey Graham on X.

US Senator Lindsey Graham announced the approval on January 8, 2026, amid a stalled India-US trade deal.
The bill slams 500% secondary tariffs on Russia's oil-buying trade partners, not just Moscow, but threatens countries buying oil from Russia.

While India imports substantial volumes of crude oil,nearly 30 to 35 %, the 500% tarrif threat looms over India along with other BRICS nations like China and Brazil.

India’s ‘Market Driven’ Imports

The India-US Trade deal stands stalled, with negotiations underway. New Delhi has continuously maintained ‘market-driven’ choices meeting consumer energy needs.

Last year in October, Union Minister Piyush Goyal affirmed India’s stand on trade negotiations. He said, "We are talking to the United States, of course, but we don't do deals in a hurry, and we don't do deals with deadlines or with a gun on our head."

While talks continue and fresh tarrif treats loom over New Delhi amidst US Commerce Secretary Howard Lutnick’s claims and approval of the Sanctioning Russia Act of 2025, India awaits a finalised trade pact.


Also Read: Anti-Khamenei Protests Rage In Iran: 10 Points On The Uprising, Demands And Reza Pahlavi's Call