In a recent podcast interview, US Commerce Secretary Howard Lutnick stated that the trade deal between the US and India fell through because Indian Prime Minister Narendra Modi did not place a call to then-President Donald Trump.
Speaking on the All-In Podcast, hosted by four Silicon Valley venture capitalists and entrepreneurs, Lutnick explained that negotiations with other countries were advanced earlier, based on the assumption that the deal with India would be finalized first.
"Let's be clear, it's Trump's deal. He's the one who closes it. He handles it. Everything is set up, but you need Modi to call the President. They were hesitant to do that, so Modi didn't make the call. That Friday passed, and by the following week, we were finalizing deals with Indonesia, the Philippines, and Vietnam. We had already negotiated with them, assuming India would be wrapped up first, so we negotiated those deals at a higher rate. Now, the issue is that those deals came out at a higher rate, and then India comes back and says, 'Okay, we're ready.' I asked, 'Ready for what?'" the US Commerce Secretary explained.
India's exports to the US currently attract a 50% tariff rate. But On Thursday, Republican Senator Lindsey Graham announced that President Donald Trump has approved a new sanctions bill, following a "productive" meeting on Wednesday. The bill, which could be voted on as early as next week, allows the U.S. to impose tariffs of up to 500% on countries, including India and China, that continue to buy oil from Russia. This move could directly impact trade and prices for many people.