Trade Tensions: India's Firm Stance Amid US Claims

India dismissed comments by US Commerce Secretary Howard Lutnick claiming a failed trade deal due to Modi's lack of a phone call. Despite tensions and tariffs, India remains committed to a beneficial agreement. The stalled trade negotiations are a significant point in the strained India-US relations.


Devdiscourse News Desk | New Delhi | Updated: 09-01-2026 18:36 IST | Created: 09-01-2026 18:36 IST
Trade Tensions: India's Firm Stance Amid US Claims
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In a recent development, India has strongly refuted US Commerce Secretary Howard Lutnick's assertions that Prime Minister Narendra Modi's inaction was a reason for a trade deal's failure last year. India called Lutnick's remarks 'inaccurate' and stated its continued interest in a mutually beneficial agreement.

The trade negotiations encountered severe hindrances following President Trump's imposition of a hefty 50% tariff on India, coupled with an additional 25% duty linked to India's Russian crude oil purchases. This has exacerbated tensions in the bilateral relationship.

The Indian government has emphasized that during 2025, Modi and Trump have engaged in multiple discussions aimed at advancing the trade agenda. Officials stressed that a mere phone call would not have sealed the deal, contrary to Lutnick's claims, and highlighted ongoing challenges such as tariffs and immigration issues.

(With inputs from agencies.)

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