India Rejects Trump’s Trade Claim New Delhi Denies US Role In India-Pakistan Ceasefire

Trade did not feature at all in recent conversations between senior US and Indian officials regarding the India-Pakistan crisis, according to individuals familiar with the matter, countering US President Donald Trump's assertion that he used trade to prevent a conflict between the two nuclear-armed nations, reported the Hindustan Times.

Trump made the claim while addressing the media at the White House, where he reiterated his earlier statement that his administration had helped "broker a full and immediate ceasefire" between India and Pakistan.

Photo Credit: AP/PTI

Trump was the first to announce on May 10 that the two countries had agreed to cease hostilities following four days of intense drone, missile, and long-range weapon strikes and counter-strikes.

The Indian government, however, maintained that the understanding to halt all military action had been reached bilaterally by the Directors General of Military Operations (DGMOs).

Following India's launch of Operation Sindoor on May 7 - targeting terrorist infrastructure in Pakistan-administered territory in retaliation for the Pahalgam terror attack on April 22 - there was reportedly no mention of trade during conversations US Vice President JD Vance had with Prime Minister Narendra Modi on May 9, nor during calls between Secretary of State Marco Rubio and External Affairs Minister S Jaishankar on May 8 and 10 and National Security Adviser Ajit Doval on May 10, the sources said on condition of anonymity.

One individual rebutted the US claims by stating, "There was no reference to trade in any of these discussions."

During his White House briefing, Trump spoke of the "historic events" of the preceding days and insisted that trade had played a key role in the decision by India and Pakistan to de-escalate.

"On Saturday, my administration helped broker a full and immediate ceasefire, I think a permanent one, between India and Pakistan, ending a dangerous conflict of two nations with lots of nuclear weapons," he said.

Referring to the intensity of the conflict, Trump stated that both sides were "going at it hot and heavy and it was seemingly not going to stop", and credited the US for having "helped a lot", including through trade, to pull the two nations back from the brink.

"I said, come on, we're going to do a lot of trade with you guys, let's stop it," Trump said. "If you stop it, we're doing trade. If you don't stop it, we're not going to do any trade. People have never really used trade the way I've used it but that I can tell you."

He added, "Then, all of a sudden they said, I think we're going to stop and they have. They did it for a lot of reasons but trade is a big one."

Trump also claimed the US would "do a lot of trade" with both India and Pakistan.

"We're negotiating with India right now, we're going to be soon negotiating with Pakistan and we stopped a nuclear conflict. I think it could have been a bad nuclear war, millions of people could have been killed," he said.

Indian and US negotiators are currently finalising the first phase of a bilateral trade agreement, which Trump and Modi had resolved during their February meeting in Washington would be completed by autumn 2025. The agreement aims to address tariffs, non-tariff barriers, and market access. Trump has also suspended the 26% customised tariffs on India until July.

Trump's decision to announce what he described as a "full and immediate ceasefire" on 10 May, before any formal Indian statement, reportedly caused unease in New Delhi.

The ceasefire announcement was made by Trump at around 5.30 pm on Saturday, and India confirmed the development approximately 30 minutes later. According to sources, the understanding with Pakistan was reached on India's terms and was not imposed by any external party.

A statement from the US State Department on 10 May described the understanding as a "US-brokered ceasefire", and Trump reiterated his claims in a social media post on 11 May, calling it a "historic and heroic decision".

Ironically, in that same post, Trump wrote: "While not even discussed, I am going to increase trade, substantially, with both these great Nations."

Trump also reiterated his offer to mediate the Kashmir dispute, saying he hoped to "work with both sides to see if a solution can be arrived at concerning Kashmir."

The Indian government has maintained that it will only engage with Pakistan at the level of the DGMOs, and that discussions on issues such as Kashmir or the Indus Waters Treaty will remain suspended as part of its diplomatic and economic measures against Pakistan following the Pahalgam terror attack, which killed 26 civilians.