US Imposed 50% Tariffs After India Missed Multiple Trade Deal Deadlines: Report

India missed a fixed deadline set by the United States to finalise a proposed trade agreement, following which Washington imposed a 50 per cent tariff on Indian exports, the US has claimed.

According to US Commerce Secretary Howard Lutnick, India was given a limited window, described as “three Fridays”, to close the deal, but failed to do so, forcing the US to move ahead with trade agreements with other Asian countries instead.

He also claimed that the agreement further didnt materialize because because Prime Minister Narendra Modi did not personally reach out to US President Donald Trump.

Lutnick made the remarks during a conversation with American investor Chamath Palihapitiya on the All-In Podcast, where he offered a behind-the-scenes account of why the much-anticipated India–US trade deal collapsed despite months of negotiations.

According to Lutnick, officials from both sides had already worked out the details of the agreement, and the overall structure of the deal was ready to be signed. However, he said the final stage required direct communication between the two leaders, a step that in his words, never happened.

“I would negotiate the contracts and set the whole deal up, but let’s be clear, it’s his deal. He’s the closer,” Lutnick said, referring to Trump. “It’s all set up, you’ve got to have Modi call the President. They were uncomfortable doing it. So Modi didn’t call.”

Lutnick further claimed that India was given several opportunities to conclude the agreement within a fixed timeframe. He said New Delhi was placed on what he described as a “short clock” and was given three specific deadlines, referred to as “three Fridays”, to finalise the deal.

Referring to Trump’s trade strategy, Lutnick explained that the US administration followed what he called a “staircase model.” Under this approach, countries that moved quickly were offered the most favourable terms, while those that delayed were subjected to higher tariff rates.

“The first deal was with the United Kingdom,” Lutnick said, adding that Trump was repeatedly asked which country would be next. “India’s name was taken publicly again and again.”

Despite this, he claimed India failed to close the deal within the allotted time. Once the deadline passed, the US shifted its focus to other countries in the region.

“That Friday left, and the next week we did Indonesia, the Philippines, Vietnam,” Lutnick said, noting that Washington announced a series of trade agreements across Asia soon after. He added that these deals were finalised at higher rates, as the US had initially expected India’s agreement to be completed first.

According to Lutnick, India attempted to reopen talks nearly three weeks after missing the deadline. By then, he said, the US had already moved on.
“When India came back later and said they wanted to proceed, they were told the opportunity was gone,” he said.

Lutnick also touched upon India’s continued oil trade with Russia, suggesting that New Delhi’s firm stance on the issue complicated negotiations with Washington. Despite this, he expressed confidence that India would eventually return to the negotiating table.

Earlier, speaking to Bloomberg TV, Lutnick said he expected India to seek a deal with the US within a few months. “So I think, yes, in a month or two months, I think India is going to be at the table,” he said, adding, “They’re going to say they’re sorry and they’re going to try to make a deal with Donald Trump.”

He also issued a warning, stating that India could face steep trade penalties if it failed to align with US expectations. “If India does not support the United States, they will have to pay 50 per cent tariffs on its exports to the US,” Lutnick said.

The United States has already imposed high tariffs on several major exporters, including India and China. Since August 2025, Indian goods entering the US market have been subject to a 50 per cent import duty, significantly impacting bilateral trade.

Also Read: “Important to Make Me Happy”: Trump Warns India on Russian Oil, Hints at More Tariffs