Business

India's trade agreement with the United States hit a snag because Prime Minister Narendra Modi did not reach out to President Donald Trump for a final discussion, according to Commerce Secretary Howard Lutnick. The trade negotiations fell apart last year, leading Trump to raise tariffs on Indian products to 50% in August, the highest in the world. This included a 25% tax in response to India buying oil from Russia. "Everything is ready, but Modi needs to call the President. They were hesitant to do that," Lutnick shared in an interview on the All-In podcast, a U.S. program featuring four venture capitalists focused on business and technology. His remarks came after Trump increased pressure for discussions, warning that tariffs might go even higher unless India reduces its Russian oil imports. This situation caused the Indian rupee to drop to a record low, unsettling investors eager for progress in the ongoing trade negotiations. India is still looking for a tariff rate that lies between what Washington offered to Britain and Vietnam, but that offer has now expired, Lutnick mentioned. The Indian trade ministry has not yet replied to an email seeking comment on Lutnick's statements. According to Reuters, New Delhi and Washington were close to finalizing a trade deal last year, but a breakdown in communication led to the deal's failure.