US: No call so talks fail

₹ falls 28 paise to close at 90.18 against $

- REUTERS

India's proposed trade agreement with the United States stalled last year after Prime Minister Narendra Modi did not place a phone call to President Donald Trump ahead of finalising the deal, US Commerce Secretary Howard Lutnick has said.

Following the collapse of talks, Trump doubled tariffs on Indian goods in August, last year to 50 per cent, the highest rate imposed on any country. This included a 25 per cent levy slapped in retaliation for India's continued purchases of Russian oil. Lutnick's remarks came as Trump renewed pressure on New Delhi, warning this week that tariffs could rise further unless India reduces its Russian oil imports. The breakdown in negotiations has already driven the rupee to record lows and unsettled investors awaiting progress.

India's trade pact with the United States stalled last year because Prime Minister Narendra Modi did not make a telephone call to President Donald Trump ahead of a deal, Commerce Secretary Howard Lutnick said Friday, giving an account of events that New Delhi has denied.