U.S. Commerce Secretary Howard Lutnick talked about the trade agreement between India and the US that is currently on hold during the negotiations between the two countries. He pointed out that the main reason for the delay was not the policy issues. On the other hand, he mentioned that the agreement was affected because Prime Minister Narendra Modi did not directly talk to then President of the US Donald Trump.
Lutnick Says Modi's Call Was Crucial
Lutnick made it clear that it was a direct call from Modi to Trump which would lead to the signing of the trade deal. However, the Indian government was not on board with this, and Modi refrained from making the call. Lutnick pointed out that the US had wrapped up trade agreements with countries such as Indonesia, the Philippines, and Vietnam. He said the India deal was supposed to be over even before these agreements. The agreement was thus denied due to the non-occurrence of the call, and it is not now being viewed as a possibility.
He also drew a parallel between India and Britain, stating that UK Prime Minister Keir Starmer's call to Trump during the negotiations immediately resulted in the finalization of the trade deal, and the very next day, the two leaders announced it at a press conference. Lutnick further commented that even though Modi has previously declined, there is still a chance that the call can happen, and talks can be resumed.
The U.S. Imposition of Tariffs on India
The U.S. was in the middle of trade talks when it slapped tariffs on India and even threatened to take more action. Not long ago, President Trump signed a bill that may lead to as high as 500 percent tariffs on nations that buy oil from Russia. If this law is enacted, it will be applicable to countries like India, China, and Brazil among others.
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