Trade deal failed as Modi didnt call: Trump aides remarks put US President under spotlight
US Commerce Secretary Lutnick said that after not receiving a phone call from PM Modi, the US went on to do deals with other countries, including Indonesia, the Philippines, Vietnam, and Malaysia.
New Delhi: US Commerce Secretary Lutnick has said that the much-anticipated trade deal between India and the US could not be finalised as Prime Minister Narendra Modi did not call President Donald Trump. The recent remarks by the key Trump administration official help explain the US President's long-running attacks on India.
Explaining why the trade deal between India and the US didn't fall through, Lutnick said, "I set the deal up. But you had to have Modi call President Trump. They (India) were uncomfortable with it. So Modi didn't call." Trump's top aide made the remarks during a podcast interview with entrepreneur Chamath Palihapitiya.
Trump’s tariff attacks on India driven by ego, not trade issues
US Commerce Secretary's remarks have put Trump under the spotlight. As Lutnick clearly said that PM Modi did not reach out to the US President personally to seal the trade deal, it appears that Trump’s tariff rhetoric against India, all this while, was personal and not policy-driven.
India-US trade deal in limbo
Lutnick said that after not receiving a phone call from PM Modi, the US went on to seal trade deals with other countries, including Indonesia, the Philippines, Vietnam, and Malaysia. He said that India called back after three weeks, but hinted that the rates are now getting difficult to negotiate.
"We did trade deals with Indonesia, the Philippines, and Vietnam. We assumed a trade deal with India before them. So, now the problem is that the deals came out at a higher rate and then India claws back," Lutnick said.
Lutnick also claimed that the conditions under which India and the US were seeking to close the trade deal were no longer on the table. "The US has stepped back from that trade deal that we had agreed to earlier. We are not thinking about it anymore," Lutnick said."You know, it was like three weeks later. Are you ready for the train that left the station three weeks ago?" Lutnick added.
Trump's more tariff warning for India
Earlier this week, Trump reiterated his good relationship with Prime Minister Modi but underlined PM Modi's resentment over the high tariffs imposed on India for purchasing Russian oil. "I have a very good relationship with PM Modi, but he is not happy with me, as India is paying high tariffs. But now they have reduced it very substantially, buying oil from Russia," Trump said.
He also warned that Washington could impose more tariffs on Indian goods if New Delhi does not stop buying Russian oil. The US has imposed steep tariffs of 50 per cent on India, over purchases of Russian oil, which the Trump administration sees as supporting Russia's economy amid the Ukraine conflict.
Trump's nod to Bill that threatens 500% tariff on Russian oil buyers
Lutnick's statement comes a day after Trump gave his nod to the bipartisan Russia Sanctions Bill which threatens to impose 500 per cent tariff on countries buying Russian oil, including India, China and Brazil.
Republican Senator Lindsey Graham, a prominent defence hawk said the bill gives "tremendous leverage against countries like China, India and Brazil" to incentivise them to stop buying the cheap Russian oil that "provides the financing for Russian President Vladimir Putin's bloodbath against Ukraine".