- Wednesday, July 16, 2025
Donald Trump again claimed he defused India-Pakistan tensions by threatening to cancel trade deals, but India dismissed his remarks, crediting direct military talks for the ceasefire agreement.
By: Vibhuti Pathak
US President Donald Trump has once again claimed that he averted a potentially catastrophic war between India and Pakistan by threatening to cancel all US trade deals with both countries. Speaking to reporters at the White House, Trump asserted that he instructed senior officials to warn New Delhi and Islamabad of a complete halt in trade if hostilities did not cease. According to Trump, this ultimatum led both nations to “call back” and agree to stop fighting, ending what he described as a conflict that “was going to be maybe nuclear”.
Trump explained, “I asked Howard Lutnick to call and tell India and Pakistan that Trump wants to cancel all trade deals with both countries, if they continue the war. Both nations called back and then stopped fighting.” He further compared his approach to similar tactics he claimed to have used in other global hotspots, such as Serbia and Kosovo.
India Firmly Rejects Trump’s Mediation Claims
Despite Trump’s repeated assertions—now made at least 17 or 18 times publicly—India has consistently rejected the notion that US trade policy or third-party mediation played any role in the ceasefire with Pakistan. Indian officials maintain that the de-escalation in May followed direct military-level talks between the Directors General of Military Operations (DGMOs) of both countries, not external intervention.
Prime Minister Narendra Modi, in a 35-minute phone call with Trump after the G7 summit, made it “explicit” that “at no time, at any level, were there any talks on issues like India-US trade deal or mediation between India and Pakistan through America”. Modi stressed that India has never accepted and will never accept third-party mediation in its relationship with Pakistan.
The Ceasefire: Direct Military Dialogue, Not US Pressure
The recent round of hostilities between India and Pakistan, which lasted four days and included drone and missile exchanges, ended with a ceasefire agreement on May 10. According to Indian and Pakistani military statements, the breakthrough was achieved through a hotline conversation between the DGMOs, during which Pakistan proposed the cessation of hostilities and both sides agreed to measures for troop reduction along the border.
Indian Army officials confirmed that the talks focused on ensuring neither side would fire a single shot or engage in aggressive action, and that all steps toward de-escalation were agreed upon directly by the two militaries without outside involvement.
Diplomatic Standoff: Contrasting Narratives
While Trump continues to highlight his role in averting a “nuclear” conflict and claims credit for brokering peace through the threat of trade sanctions, Indian officials have repeatedly pushed back, emphasizing the country’s longstanding policy against third-party mediation in disputes with Pakistan. Modi’s government has also pointed out that any ceasefire understanding was reached after Pakistan requested talks, which were conducted directly through established military channels.
Looking Ahead: Trade Talks and Diplomatic Relations
Trump has suggested that new trade negotiations with India could expand US market access, but Indian officials remain focused on bilateral issues and direct dialogue with Pakistan as the way forward. The episode underscores the complex and often conflicting diplomatic narratives that shape India-US-Pakistan relations, with each side seeking to assert its version of events on the global stage.
