India rebuts Trump’s claims of using trade threat for Pakistan ceasefire

New Delhi has rejected the US president’s assertion that he issued a trade threat in order to bring about a ceasefire

Indian Foreign Ministry sources have dismissed claims that the US threatened to reduce trade as a means of brokering a ceasefire with Pakistan. 

Speaking at a White House briefing on Monday, US President Donald Trump said he had intervened at a critical moment in the standoff between the nuclear-armed neighbors, and had told both countries: “I was 'gonna do a lot of trade with you, let's stop it'.” He claimed that this approach had helped to ease tensions.

The conflict had escalated after India launched strikes on suspected terrorist facilities in Pakistan-controlled territory under the codename Operation Sindoor on May 7, in response to a terror attack in Indian-administered Kashmir in April.

Trump also claimed in the Monday briefing that his administration was instrumental in brokering the May 10 ceasefire between India and Pakistan, and that he was confident that it would last indefinitely. 

“On Saturday, my administration helped broker an immediate ceasefire, I think a permanent one between India and Pakistan – the countries having a lot of nuclear weapons. Ending a dangerous conflict between two nations with lots of nuclear weapons. And they were going at it hot and heavy, and it was seemingly not going to stop,” he said.

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Indian Foreign Ministry sources stated that after Operation Sindoor commenced, US Vice President J.D. Vance spoke to Indian Prime Minister Narendra Modi on May 9. US Secretary of State Marco Rubio also spoke to Indian Foreign Minister S. Jaishankar on May 8 and May 10. However, there was no reference to trade in any of these discussions, the sources said.

In an address to the nation on Monday evening, Modi said “terrorism and trade cannot exist together.”

⚡️Modi: Terror & Talks Won't Happen Together, Terror & Trade Won't Happen Together, Blood & Water Won't Flow Together#IndiaPakistan #OperationSindoor https://t.co/eN7CThc8FY pic.twitter.com/zvCbL6LoJ6

— RT_India (@RT_India_news) May 12, 2025

India and Pakistan have both claimed to have achieved their military objectives in the standoff, while accusing each other of targeting civilians.

The Director Generals of Military Operations from the two countries have held discussions, focusing on their commitments to the ceasefire. According to the Indian Army, as reported by the ANI news agency, it was agreed that both sides would consider immediate measures to reduce troop presence from the borders and forward areas.