A Reuters report highlights a significant diplomatic dispute between India and the United States regarding the breakdown of a proposed bilateral trade agreement. According to US Commerce Secretary Howard Lutnick, the trade deal, which was reportedly close to finalization in 2025, collapsed because Prime Minister Narendra Modi did not make a crucial telephone call to then-President Donald Trump to conclude negotiations. Lutnick made these remarks on the 'All-In podcast', stating that while 'everything was ready', the Indian side was 'uncomfortable' making the call, leading to its non-occurrence. However, New Delhi has vehemently refuted Lutnick's claims. India's Ministry of External Affairs (MEA) spokesperson stated that the characterization of discussions by Lutnick was 'not accurate'. The MEA clarified that Prime Minister Modi and President Trump had, in fact, spoken on the phone eight times in 2025, covering various aspects of their comprehensive partnership. This directly contradicts the US Commerce Secretary's assertion about a lack of communication from the Indian leader. The collapse of these trade talks in 2025 had tangible consequences, with President Trump reportedly doubling tariffs on Indian goods to 50% in August of that year, the highest globally, and imposing an additional 25% levy in retaliation for India's continued purchases of Russian oil. Adding to the pressure, Trump has reportedly renewed warnings this week, threatening further tariff increases unless India curbs its Russian oil imports. Reuters itself had previously reported, citing an Indian government official, that while New Delhi and Washington were close to a deal, a communication breakdown indeed occurred. This official suggested Modi may have avoided a call with Trump to prevent a potentially awkward or one-sided discussion. The ongoing disagreement underscores the complex and often tense trade and geopolitical dynamics between India and the United States, particularly concerning market access, tariffs, and India's energy ties with Russia.