Trump Claims 350% Tariff Threat Led to India-Pakistan Truce

In a recent statement, United States President Donald Trump reiterated his claim that he played a pivotal role in defusing escalating tensions between India and Pakistan by threatening both nations with a 350% tariff. During a speech at the US-Saudi Investment Forum, Trump stated that Indian Prime Minister Narendra Modi contacted him to express that the two countries would not engage in war after the tariff threat.

Trump's assertion, which he has made over 60 times since May 2025, suggests that his intervention was crucial in achieving a ceasefire between the two nuclear-armed neighbours. He recounted that he told both India and Pakistan they could continue their conflict, but he would impose hefty tariffs on their trade with the US. "I'm putting a 350% tariff on each country. No more trade with the United States," Trump claimed.

Despite these assertions, the Indian government has consistently denied any involvement from third parties in the negotiations for peace. On May 10, 2025, India announced a ceasefire following direct military discussions, dismissing Trump's claims as unfounded.

Trump's comments were made in the presence of Saudi Crown Prince Mohammed bin Salman, where he also suggested that he had successfully mediated various international disputes using tariffs as leverage. "Now, no other president would have done that… I used tariffs to settle all these wars," he added.

In the context of these claims, the Indian National Congress party has raised questions about the credibility of Trump's statements and urged Prime Minister Modi to clarify the situation. Congress Member of Parliament Jairam Ramesh highlighted the need for transparency regarding the alleged conversation between Modi and Trump, questioning the silence of the Indian leadership on such an important issue.

"Why is our Prime Minister silent? Why are his ministers silent?" Ramesh asked during a press conference, emphasising the need for accountability regarding Trump’s extraordinary claims.

The US President stated that he had received a call from Pakistani Prime Minister Shehbaz Sharif thanking him for averting a potential conflict, which he argued would have resulted in catastrophic consequences. Trump claimed he had communicated a clear message to both leaders, urging them to pursue peace instead of conflict.

The backdrop to these claims includes India's Operation Sindoor, launched on May 7, 2025, targeting terrorist infrastructure in Pakistan as a response to a deadly attack in Pahalgam that claimed 26 lives. Following diplomatic discussions, a ceasefire was established on May 10, with no acknowledgement from India of any external mediation.

As the dialogue between the two countries continues, the situation remains tense, and the claims made by President Trump have sparked significant political debate within India. The Indian government is yet to respond formally to Trump's remarks, leaving many observers wondering about the future of India-Pakistan relations and the role of international actors in regional disputes.