Lutnick: India Missed More Generous Deal When SE Asian Countries Settled First
Commerce Secretary Howard Lutnick, on the All-In podcast episode hosted by a Canadian-American venture capital billionaire, said India has not gotten a trade deal because the U.S. no longer wanted to offer the terms they'd agreed to when India's prime minister didn't call President Donald Trump within a three-week window.
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Lutnick explained that Trump's position is that the deals should be like a staircase, with the first mover getting the best deal, and each country coming in later getting a less generous offer.
"If you remember, so I did the first deal, the U.K. deal, and we told the U.K. that they had to get it done by two Fridays from now. That that was the date that the train was going to leave the station, by two Fridays, because I have a lot of other countries doing things and, you know, if someone else is first, they're first. And President Trump does deals like a staircase.
"First player gets the best deal. You can't get the best deal after the first guy went. Everyone says, 'I want the U.K. deal. I want the U.K. deal.' The answer is no. They were first. They took the chance. They moved quickest. They're first. Second up a stair. So that sets the floor, right? And then the next one's got to be higher. And then the next one higher.
"And then next one higher, the next one higher. So he does things that way because that way it incents you to come to the table."
Lutnick said that Trump had mentioned India was close several times. "We told India: You had three Fridays. You have to have [Indian Prime Minister Narednra] Modi call the president."
But, Lutnick said, "They were uncomfortable doing it. So Modi didn't call."
So, Lutnick said, the U.S. announced Indonesia, the Philippines, Malaysia and Vietnam, all with higher rates than India and the U.S. had agreed to.
"We negotiated them and assumed India was going to be done before them," he said.
"And then India calls back and says, 'Oh, OK. We're ready.' I said, 'Ready for what?' You know, it was like three weeks later. I go, 'Are you ready for the train that left the station three weeks ago?'"
He said Indian negotiators wanted the deal that had been agreed to before the Southeast Asian announcements, and said, "But, but you agreed."
"And I said 'then. Not now, then.' And so that's, that's the problem."
He added, "India will work it out."
India disputed this account at a press conference in New Delhi. "On several occasions, we have been close to a deal. The characterization of these discussions, the reported remarks, is not accurate," Ministry of External Affairs spokesperson Randhir Jaiswal said. He also pointed out that Modi spoke with Trump on the phone eight times in 2025, on various topics.