Ahead of any official announcement, whispers emerged from inside Trump’s inner circle. This time it was Howard Lutnick, now commerce secretary, speaking bluntly about what sank the agreement. Close to completion, the pact lost steam because of one gesture.
Phone lines stayed sil missing ent, Modi never reached out. Trump took note. Small moments sometimes weigh heavily in global deals. Personal pride can shift economic paths. The absence of a single conversation changed direction. Diplomacy often hinges on more than policy.
On a show run by businessperson Chamath Palihapitiya, Lutnick mentioned the deal’s foundation was mostly built. Still, just one last move needed to happen before it could close. That step mattered most.
What he said hints that even though money issues nearly reached a deal, how things looked on the global stage – and whether top leaders showed up – got in the way just before closing.
Almost There Yet Not Quite
Lutnick mentioned how near India and the US had been to wrapping things up. Yet, at last, New Delhi ended up out of step. Not long afterward, Washington moved forward with pacts involving nations such as Indonesia, Vietnam, even the Philippines. Those accords were supposed to follow behind one with India.
Trump Warns on Tariffs Amid Russia Oil Concerns
Few days back, Trump suggested higher tariffs on India. Trade moves tied to New Delhi buying Russian energy surfaced around then. Pressure showed up right after those signals appeared.
Few things show the shift in American trade talk like how deals now tie closely to who stands where politically. Economic teamwork slips into step with which nations back Washington’s stance these days.
India Resists 50 Percent Tariff Pressure
Last year in August, the US slapped 50 percent duties on products from India because of New Delhi buying oil from Russia during the war in Ukraine. After that move, American officials began treating those taxes as a tool to nudge India toward cutting back on energy imports from Moscow.
Still, India holds its ground. Over time, New Delhi insists choices on power supplies come from what markets show and what people need – shaped far more by reality than by outside demands.
Back in October, Union Commerce Minister Piyush Goyal put it straight – talks could happen, though deadlines wouldn’t be pushed.
India Might See 500 Percent Tariff Hikes?
Fears grow of things getting worse. A new move by Senator Lindsey Graham says Trump backed tough penalties on Russia, which might affect nations doing business with it – India among them.
Starting things off differently, the new “Sanctioning Russia Act of 2025” pushes a rule where any nation buying Russian uranium or oil could trigger heavy US import fees. That means if another country sells these resources to the United States, penalties kick in – minimum five hundred percent added onto costs.
The president wouldn’t have a choice here; applying those rates becomes mandatory. Trade involving such materials pulls consequences automatically. This step aims squarely at markets helping Moscow profit from energy exports. Notably, it’s not about suspicion – only confirmed deals count. Once proof exists, tariffs rise sharply without delay.
Pressure grows on Russia through new measures aimed at disrupting its war efforts in Ukraine. This approach hits beyond Moscow, reaching nations that trade closely with it.
The goal appears clear: weaken support lines by going after economic ties. Countries helping Russia now face consequences too. Focus shifts to those supplying goods or backing actions indirectly. Tougher rules come into play for foreign partners involved. Military advances may slow if supplies get harder to move. Economic reach of allies becomes a target. Sanctions stretch further than before. Impact depends on how tightly linked these partners remain. Some might rethink their stance when costs rise. Restrictions aim to create friction where it hurts most.
What Lies Ahead
Even as talks go on between India and the US, Lutnick’s comments show that personal dynamics and gestures matter just as much as data. What comes of the overlooked phone call – lasting impact or quiet memory – is still unclear.
Right now, what seemed nearly settled still hangs in the air.
