The US–India trade deal stalled at the final stage due to a missed political signal, US Commerce Secretary Howard Lutnick has claimed.

According to Lutnick, the agreement was ready but required a direct call from Prime Minister Narendra Modi to US President Donald Trump to close it. That call did not happen. After that, Washington moved on to finalise trade deals with countries such as Indonesia, Vietnam, and the Philippines.

Speaking on the All-In Podcast, Lutnick said Trump personally closes deals. India’s hesitation cost it the opportunity. In July 2025, the US concluded tariff negotiations with several countries, including the European Union, the UK, Japan, South Korea, Vietnam, Indonesia, and the Philippines.

Lutnick argued that countries which closed talks earlier received lower tariffs. However, the final rates do not fully support this claim. Vietnam, despite early negotiations, still faces high tariffs.

India currently faces a 50% tariff on exports to the US — the highest in Asia. Lutnick said the US had negotiated with India, assuming an early closure. Still, New Delhi returned weeks later seeking better terms, by which time the “train had already left the station.”

Trump has previously said he expected India to be the easiest partner to strike a deal with. However, tough bargaining by India complicated talks. Additionally, tensions following Trump’s claims of US involvement in the India-Pakistan conflict in May added to the complications.

Despite multiple discussions between the two leaders, a comprehensive US–India trade deal remains a work in progress.

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