Trade negotiations between India and the United States remain uncertain as fresh remarks by a senior aide of US President Donald Trump have shed light on why a potential agreement failed to materialise. Despite advanced discussions, the proposed deal reportedly collapsed due to a lack of direct political outreach at the highest level.
US Commerce Secretary Howard Lutnick said that the framework for an agreement had already been prepared, but the final step required direct communication between Prime Minister Narendra Modi and President Trump. According to him, this outreach never happened, leading to the talks losing momentum. He added that both sides were extremely close to sealing the agreement, but India&rsquo;s position eventually weakened the chances of closure.
Lutnick also pointed out that the United States went on to finalise trade agreements with countries such as Indonesia, Vietnam and the Philippines, even though the India deal was expected to be concluded before those negotiations. He noted that India was negotiating at higher tariff levels compared to other partners.
These comments come against the backdrop of rising pressure from Washington. President Trump has recently indicated that tariffs on Indian goods could be increased further if New Delhi does not address concerns related to its continued energy trade with Russia. The US has already imposed 50 per cent tariffs on India since August last year, citing India&rsquo;s purchase of Russian oil.
India, however, has consistently maintained that market conditions and domestic consumer needs drive its energy procurement decisions. Union Minister Piyush Goyal has reiterated that while India remains open to dialogue, it will not enter trade agreements under external pressure or imposed timelines.
Concerns have also grown over the possibility of even steeper tariffs. US Senator Lindsey Graham has claimed that President Trump has approved a proposed Russia sanctions bill. The draft legislation seeks to impose tariffs of at least 500 per cent on goods and services imported from countries that continue trade in Russian-origin petroleum and uranium, a move that could significantly impact India if passed.
The proposed law aims to isolate Russia economically by targeting its key trading partners, adding another layer of uncertainty to India-US trade relations.

Trump aide cites missed outreach as talks stall and tariff risks grow

India-US Trade Deal Stalls Amid Tariff Threats

Trump aide cites missed outreach as talks stall and tariff risks grow

January 9, 2026 | 16:38 IST