‘Modi didn’t call’: Trump aide claims reason for India-US deal failure

January 9, 2026

New Delhi: A close aide of US President Donald Trump has claimed that a major deal between India and the US failed to be finalized because Prime Minister Narendra Modi didn’t contact Trump.

The deal was almost finalized, but fell apart

US Commerce Secretary Howard Lutnick said in a podcast with entrepreneur Chamath Palihapitiya, “Everything was ready, but I said Modi should call the president… They (India) were uncomfortable doing it, so Modi didn’t call.” He explained that India and the US were very close to finalizing the deal, but New Delhi was “on the wrong side of the seesaw.”

The US completed deals with other countries first

Latnik said that the US subsequently completed deals with countries like Indonesia, Vietnam, and the Philippines, while the deal with India was supposed to be finalized first. He said, “The India deal was supposed to be finalized before theirs. I negotiated a higher rate with them.”

Trump hinted at raising tariffs on Russian oil trade

Trump recently hinted that the US could increase existing tariffs on India if India did not stop its oil trade with Russia. Trump said, “India wanted to please me. Modi is very nice, and he knew I wasn’t happy. It was important to please me. We can raise tariffs on them quickly.”

India’s ‘No Deadline’ Stance

The US imposed a 50% tariff on India in August 2025, which was linked to India’s oil trade with Russia. India has always maintained that its energy deals are determined by market and domestic needs. Union Minister Piyush Goyal clarified in October, “We are in talks with the US, but we don’t rush deals, nor do we do deals under deadlines or pressure.”

Threat of a 500% tariff hike?

Recently, US Senator Lindsey Graham stated that Trump has approved a Russia sanctions bill, under which tariffs on India could increase by up to 500%. Under the ‘Sanctioning Russia Act of 2025,’ heavy tariffs could be imposed on all imported goods and services from countries that knowingly trade in Russian-origin uranium and petroleum products. This bill is designed to pressure Russia.

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 Mattoo (@MattooShashank) January 9, 2026