PM Modi Didn't Budge On Deadline, Refused To Compromise On Core Interests; Key Trump Aide's Big Revelation On US Trade Deal Deadlock

What came as a major revelation amid the ongoing India–US trade negotiations, US Commerce Secretary Howard Lutnick, a close aide of President Donald Trump, has outlined why the proposed bilateral trade deal has not been finalised, stating that India did not agree to the US’s original terms within a prescribed timeline.

Speaking on The All-In Podcast to Chamath Palihapitiya, Lutnick said the US had placed an initial trade offer before India and expected the agreement to be concluded within a defined period, which, according to him, did not happen.

“I set the deal up. But you had to have Modi call President Trump. They were uncomfortable with it. So, Modi didn’t call,” Lutnick said, underlining the importance Washington placed on leader-level engagement to move the talks forward.

US Set Timeline, India Did Not Accept Original Offer

Lutnick claimed that the US had anticipated finalising a trade deal with India before concluding agreements with countries such as Indonesia, the Philippines and Vietnam. “We did trade deals with Indonesia, the Philippines, and Vietnam. We assumed a trade deal with India before them,” he said.

However, Lutnick stated that India did not agree to the US’s original proposal within the expected timeframe. “So now the problem is that the deals came out at a higher rate and then India claws back,” he said, suggesting that the terms on offer later became less favourable.

US Says It Has Changed Its Position

According to Lutnick, after India did not move ahead within the prescribed period, the US altered its stance on the deal.“They say, ‘Oh okay, we are ready.’ I said, ‘Ready for what?!’” he remarked.

When asked whether the deal could still be revived, Lutnick said Washington had moved on from the earlier understanding. “The US has stepped back from that trade deal that we had agreed to earlier. We are not thinking about it anymore,” he said.

India–US Trade Engagement Continues

India and the United States remain engaged on trade-related issues, including tariffs, market access and regulatory barriers, as part of a broader strategic partnership covering defence, energy and technology. Indian officials have not responded to Lutnick’s remarks, and there has been no official confirmation from New Delhi linking the status of the negotiations to any specific diplomatic outreach.

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