Fri Jan 09 05:48:49 UTC 2026: # U.S.-India Trade Deal Stalled Over Communication Breakdown

The Story:
A trade deal between the United States and India has reportedly stalled due to a breakdown in communication, specifically the alleged failure of Indian Prime Minister Narendra Modi to call U.S. President Donald Trump. U.S. Commerce Secretary Howard Lutnick revealed that the deal was contingent upon this direct communication, and the lack thereof led the U.S. to pursue trade agreements with other nations like Indonesia, the Philippines, and Vietnam. President Trump had previously expressed displeasure with India’s oil purchases from Russia, threatening potential tariff increases.

Key Points:

  • U.S. Commerce Secretary Howard Lutnick stated that the trade deal with India did not materialize because Prime Minister Modi didn’t call President Trump.
  • President Trump had previously warned of potential tariff increases on India due to its purchases of Russian oil.
  • Six rounds of negotiations had already taken place between the U.S. and India regarding the trade agreement, including discussions to resolve 50% tariffs on Indian goods entering the U.S.
  • The U.S. pursued and finalized trade deals with Indonesia, the Philippines, and Vietnam, assuming the India deal would be completed first.
  • Secretary Lutnick indicated that when India later expressed renewed interest, the U.S. questioned their readiness after moving forward with other agreements.
  • The original article was published on January 9, 2026.

Key Takeaways:

  • The trade deal was possibly scuttled due to a seemingly personal request by the U.S. side, indicating a potentially fragile negotiation process.
  • The U.S. appears to be prioritizing relationships with other Southeast Asian nations in the absence of a trade agreement with India.
  • India’s continued purchase of Russian oil remains a sticking point in the U.S.-India relationship.
  • The relationship between the two leaders seems to be more important than previously understood.
  • The US appears to be ready to retaliate against India if its conditions are not met.

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