Highlights:
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Howard Lutnick says India missed a fixed deadline to finalize the trade deal
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Trump preferred direct leader-to-leader engagement to close agreements, according to Howard Lutnick
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Southeast Asian countries moved ahead after India fell behind schedule
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India later returned to talks but faced less favorable terms
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Remarks come amid renewed US tariff threats and ongoing bilateral negotiations
The anticipated India-US trade agreement did not come through because Prime Minister Narendra Modi declined to personally reach out to former US president Donald Trump at a crucial moment, according to Howard Lutnick, the US Secretary of Commerce.
Speaking on the All-In Podcast on Thursday (8), Howard Lutnick outlined how negotiations with India stalled despite progress on technical aspects of the deal. He contrasted India’s experience with that of several other countries that concluded trade agreements with Washington during the same period.
According to Howard Lutnick, Trump followed a strict, time-bound approach to trade negotiations, favoring countries that moved quickly and met deadlines. Those that delayed were pushed down the priority list and faced tougher terms.
Howard Lutnick Describes Trump’s Deal-Making Strategy
Explaining Trump’s method, Howard Lutnick said trade negotiations operated on a competitive timeline. He cited the United Kingdom as the first country to finalize a deal under this framework, after being given a two-week deadline.
“The train was leaving the station,” Howard Lutnick said, adding that countries that acted early secured better outcomes. He described Trump’s approach as a “staircase,” where the first mover benefited most, while those who joined later faced stricter conditions.
Following the UK agreement, Trump publicly referenced India several times as a potential next partner. Howard Lutnick said discussions with India were active and progressing, with most of the technical work already completed.
Howard Lutnick Says Deadline Was Clearly Communicated to India
According to Howard Lutnick, India was given a clear timeline to finalize the deal. New Delhi had “three Fridays” to close the agreement, he said. While negotiators on both sides had largely aligned on the substance of the deal, the final step required direct political engagement.
Howard Lutnick said he made it clear that Trump expected a personal phone call from Prime Minister Modi to finalize the agreement. “It’s his deal. He’s the closer,” Lutnick said, explaining that Trump preferred direct communication with world leaders to conclude major trade agreements.
However, Howard Lutnick claimed India was uncomfortable with this step and that the call never happened. When the deadline passed without that engagement, the US moved on to other partners.
Southeast Asian Countries Move Ahead, Howard Lutnick Says
After the India deadline expired, Washington announced trade agreements with Indonesia, the Philippines, and Vietnam. Howard Lutnick said these deals were concluded at higher tariff levels than what had initially been offered to India.
US officials had assumed India would finalize its agreement before these countries, Howard Lutnick said. Instead, Southeast Asian nations advanced in the queue by meeting deadlines and completing negotiations.
Weeks later, India returned to the negotiating table expressing readiness to proceed. By that point, Howard Lutnick said, the opportunity had passed.
“Are you ready for the train that left the station three weeks ago?” Lutnick recalled saying, adding that India had ended up “on the wrong side of the seesaw” as other countries moved ahead.
Howard Lutnick on India’s Current Position in Trade Talks
As a result of the delay, Howard Lutnick said India now finds itself further back in the negotiation process, facing less favorable terms than those initially discussed. While both sides remember the earlier agreement in principle, he emphasized that circumstances have changed.
Howard Lutnick acknowledged that India and the US are likely to reach a deal eventually, but noted that India’s domestic political environment and parliamentary approval process often slow progress on trade agreements.
Tariff Threats and Ongoing Negotiations
Howard Lutnick’s remarks come amid renewed US tariff warnings. Trump recently said the US could raise tariffs on Indian goods quickly, particularly in response to India’s continued purchases of Russian oil.
At the same time, bilateral negotiations remain active. Six rounds of talks have already been held toward a broader trade agreement, including discussions on a framework to address the 50 percent tariffs imposed on certain Indian exports to the US.
Despite the setback described by Howard Lutnick, both countries continue to engage on trade issues, with officials signaling that negotiations are ongoing, though the terms under discussion may differ from those originally proposed.
The comments by Howard Lutnick provide a rare public account of how high-level political engagement, deadlines, and negotiating style influenced the outcome of the India-US trade talks, and how India’s position shifted as other countries moved ahead.
