‘You’ll Never Do Business’: Trump Claims Threatening 250% Tariff Stopped India-Pak Conflict

President Donald Trump has once again claimed credit for halting clashes between India and Pakistan earlier this year, saying he used the threat of a 250 percent tariff on both nations to force them to agree to a ceasefire. Speaking during his Asia tour in South Korea, Trump said the two countries were “going at it” and that his intervention prevented an all-out war following Operation Sindoor, India’s military strike after the Pahalgam terror attack in May.

In his remarks, Trump said, “They both said, ‘no, no, no, you should let us fight’. But after two days, they said, ‘we understand’ and stopped fighting.” He claimed he told both Prime Minister Narendra Modi and Pakistan’s leadership that the U.S. would impose a crushing tariff “so high they’d never do business again.” Trump framed it as part of his broader foreign-policy strategy of using trade leverage to control conflicts and gain diplomatic advantage.

Neither New Delhi nor Islamabad has commented on his latest statement. India has previously clarified that the ceasefire was initiated by Pakistan’s direct request and not due to any external intervention. Officials have also reiterated that India would never accept foreign mediation in disputes with its neighbours.

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Despite his praise of Modi as “a tough but very nice-looking guy,” Trump’s claim comes amid ongoing trade friction between the two countries. The U.S. currently imposes a 50 percent tariff on Indian imports, half of which is a “reciprocal levy,” while the rest is a “penalty tax” linked to India’s continued purchase of discounted Russian oil. Trump maintains those purchases indirectly finance Moscow’s war in Ukraine.

Negotiations between the two countries are still underway on a long-pending trade deal, expected to expand bilateral trade to $500 billion by 2030. However, disagreements persist over U.S. demands for greater access to India’s dairy and agriculture markets. Indian officials have made it clear that the proposed trade pact has no connection to Operation Sindoor or the military ceasefire, countering any implication of external influence in the country’s defence decisions.

Also Read: Trump Secures Major Trade Deal with South Korea as Won Rises and Tariff Fears Ease