Trump Claims US Trade Leverage Prevented India-Pakistan Nuclear Conflict

12 May, 2025

Former US President Donald Trump claimed his administration used trade leverage to de-escalate recent India-Pakistan tensions, averting a potential nuclear conflict. Trump stated he told both nations, "We’re going to do a lot of trade with you. Let’s stop it. If you stop it, we’re doing trade. If you don’t stop it, we’re not going to do any trade." He commended the leadership of both countries for their wisdom in understanding the situation's gravity.

Unpacked:

What specific incident led to heightened India-Pakistan tensions referenced by Trump?

The tensions escalated after India launched Operation Sindoor on May 7, targeting terrorist camps in Pakistan and areas of Kashmir controlled by Pakistan. This prompted military responses from both sides, raising fears of a broader conflict.

Did the Indian government acknowledge any US trade leverage or mediation during the crisis?

No. Indian government sources have explicitly rejected Trump’s claims, stating there was no mention of trade or US mediation in recent high-level discussions with US officials regarding the de-escalation.

How have India and Pakistan historically viewed third-party mediation in their disputes?

India has traditionally opposed third-party mediation, favoring bilateral dialogue as outlined in the 1972 Simla Agreement and 1999 Lahore Declaration. Pakistan has sometimes sought international involvement, but India’s official stance remains firm against external mediation.

How did the US actually engage with India and Pakistan during the recent crisis?

During the crisis, US officials—including the Vice President and Secretary of State—held phone calls with Indian leaders. However, Indian sources say these discussions did not reference trade, and both sides reached a ceasefire understanding independently through their military channels.