India and U.S. Trade Talks Continue After Tariffs and Call Dispute
Updated (3 articles)
Eight 2025 Calls Show Persistent High‑Level Contact Indian MEA spokesperson Randhir Jaiswal confirmed that Prime Minister Narendra Modi and President Donald Trump spoke on the phone eight times in 2025, beginning with a February 13, 2025 White House meeting and continuing through a December 11, 2025 call that highlighted progress in bilateral relations [1][2]. Both governments describe the negotiations as repeatedly “near a deal,” with Indian ministers making follow‑up visits to Washington later that year [1]. The United States has not publicly refuted the count of calls, but the frequency underscores ongoing diplomatic engagement despite public criticism.
Tariff Pressures Escalate After Stalled Negotiations In August 2025 President Trump imposed a 50 % tariff on Indian goods, citing India’s purchase of Russian oil as a trigger, and a U.S. Senate bill championed by Sen. Lindsey Graham could raise tariffs to as high as 500 % for countries dealing with Russia [1][2]. The tariffs were introduced after six rounds of trade talks stalled, adding economic pressure on Delhi while negotiations resumed without a clear timeline [2]. Both articles note that the tariff regime remains a central bargaining chip in the bilateral talks.
Lutnick’s Call‑Missing Claim Meets Official Rebuttal Analyst Jonathan Lutnick argued on a podcast that Modi’s failure to call Trump directly caused the deal’s collapse, portraying the Indian leader as “uncomfortable” with such a direct outreach [3]. The MEA rejected this narrative, labeling Lutnick’s remarks inaccurate and emphasizing the documented eight phone conversations [1][2]. This disagreement highlights divergent interpretations of leadership behavior versus the documented diplomatic record.
Trade Data Shows Resilience Amid Dispute, Agriculture Remains Sticking Point Despite the tariff regime, India’s exports to the United States rose 22 % year‑on‑year in November 2025, indicating continued commercial flow [2]. The United States Trade Representative described India’s latest offer as “the best ever,” while U.S. officials characterized India as a “tough nut to crack,” especially over agricultural market access [2]. Agriculture continues to be the primary obstacle, with no agreed timeline for resolution.
Sources
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1.
The Hindu: MEA Rebuts Lutnick Claim, Says Modi‑Trump Spoke Eight Times in 2025 as Trade Talks Persist – Details the MEA’s refutation of Lutnick, enumerates eight 2025 calls, and outlines tariff‑related legislative pressures .
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2.
BBC: India Denies Lutnick Claim That Modi Didn't Call Trump as US‑India Trade Talks Stall – Focuses on the disputed call claim, reports 50 % tariffs imposed in August 2025, and provides export growth and agricultural hurdle data .
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3.
The Hindu: Lutnick Says Modi Didn't Call Trump, Derailing India‑U.S. Trade Deal – Presents Lutnick’s podcast argument that Modi’s silence caused the deal’s failure, mentions six negotiation rounds, and compares U.S. dealings with other Asian partners .
Timeline
Feb 13, 2025 – Modi meets Trump at the White House, kick‑starting bilateral trade negotiations that later involve multiple rounds of talks and a framework to resolve 50 % tariffs on Indian goods [2].
2025 (early‑mid) – Six rounds of trade talks take place, aiming to lift the 50 % tariff regime and finalize a U.S.–India trade pact [3].
Aug 2025 – President Trump imposes 50 % tariffs on Indian imports, adding a penalty for India’s purchases of Russian oil, heightening pressure on Delhi as negotiations continue [1].
Nov 2025 – India’s exports to the United States rise 22 % year‑on‑year despite the tariff burden, showing sustained trade activity amid stalled talks [1].
Dec 11, 2025 – Modi tells Trump in a phone call that “progress has been made” in their bilateral relationship, underscoring ongoing high‑level engagement [2].
2025 (later) – A U.S. Senate bill championed by Sen. Lindsey Graham proposes up to 500 % tariffs on countries like India that deal with Russia, prompting Indian officials to monitor its impact on energy policy [2].
2025 (throughout) – Agriculture remains a key sticking point, with Washington seeking greater access to India’s farm sector while New Delhi resists, delaying a final agreement [1].
Jan 9, 2026 – Jason Lutnick says on a podcast that Modi “didn’t call” Trump, blaming the silence for the collapse of the trade deal after six negotiation rounds [3].
Jan 9, 2026 – India refutes Lutnick’s claim, asserting that Modi and Trump spoke by phone eight times in 2025 and that negotiations have been active since Feb 13, 2025 [1].
Jan 9, 2026 – The Ministry of External Affairs, via spokesperson Randhir Jaiswal, rebuts Lutnick, emphasizing eight 2025 conversations and describing the talks as repeatedly “near a deal” [2].
Jan 9, 2026 – U.S. Trade Representative Jamieson Greer calls India’s latest offer “the best ever” while labeling India a “tough nut to crack,” reflecting firm U.S. demands [1].
Jan 9, 2026 – Both sides acknowledge that no clear timeline exists for a trade agreement and that agriculture remains the principal hurdle to closing the pact [1].