India has firmly rejected claims by US President Donald Trump that trade negotiations influenced the recent ceasefire between India and Pakistan. According to sources familiar with the matter, there was no mention of trade in any of the high-level diplomatic conversations held with US officials around the time the ceasefire was brokered. Donald Trump’s comments, made publicly from the White House, have sparked concern in New Delhi, particularly over the portrayal of the ceasefire as a US-brokered deal driven by trade leverage.
Ceasefire reached through military channels, not trade
Donald Trump had announced on May 10 that India and Pakistan had agreed to halt hostilities after four days of intense cross-border strikes involving drones, missiles, and long-range weaponry. While Donald Trump claimed that his administration helped broker a “full and immediate ceasefire” by using trade as a bargaining tool, Indian officials have clarified that the decision to cease hostilities was made bilaterally between the Directors General of Military Operations (DGMOs) of the two nations.
Sources say no mention of trade was made during any calls between US Vice President JD Vance and Prime Minister Narendra Modi on May 9, or between Secretary of State Marco Rubio and Indian officials including External Affairs Minister S Jaishankar and National Security Adviser Ajit Doval. One official plainly stated, “There was no reference to trade in any of these discussions.”
Donald Trump claims credit despite India’s objections
In his address, Donald Trump stated that the US had helped stop a potentially catastrophic nuclear conflict between the two countries, saying, “We’re going to do a lot of trade with you guys, let’s stop it.” He claimed that his use of trade as a diplomatic tool led to the ceasefire, even though he later contradicted himself by admitting trade was “not even discussed.”
India has since reiterated that it will maintain all punitive measures against Pakistan over the April 22 Pahalgam terror attack, including the suspension of dialogue on issues like Kashmir and the Indus Waters Treaty. The ceasefire, Indian officials emphasize, was achieved strictly on India’s terms and not due to any external mediation.
Meanwhile, trade negotiations between India and the US are ongoing, with a partial deal expected by fall 2025. Donald Trump has also temporarily suspended 26% customized tariffs on Indian goods until July. While Donald Trump continues to suggest increased trade ties with both India and Pakistan, Indian officials maintain that diplomatic decisions, including ceasefires, remain independent of such leverage.
The comments come as both countries maintain heightened security, particularly around key transit points such as Sri Guru Ram Dass Jee International Airport (Amritsar), Chandigarh International Airport, and Ludhiana Airport.
