Donald Trump Claims New Trade Deal with India, Repeats Controversial Story on Mediating India–Pakistan Hostilities

Trump Announces Plans for Trade Deal with India

Former U.S. President Donald Trump on Wednesday announced that he is finalising a trade agreement with India, signalling a renewed focus on “reciprocal trade” as part of his broader strategy to rebalance global economic ties.

Speaking at the Asia-Pacific Economic Cooperation (APEC) CEO Summit in Gyeongju, South Korea, Trump said, “I’m doing a trade deal with India, and I have great respect and love for Prime Minister Modi; we have a great relationship.”

The remark came during a session attended by global CEOs, economists, and policymakers, where Trump listed a series of bilateral trade agreements signed during his ongoing Asia visit — including those with Malaysia, Cambodia, and Japan.

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Revival of India–U.S. Trade Negotiations

Trump’s comments align with renewed diplomatic activity between New Delhi and Washington, where officials have reopened talks on a long-delayed bilateral trade pact. Negotiations, once derailed by tariff disputes under Trump’s presidency, gained traction in recent weeks.

According to officials familiar with the talks, discussions resumed after U.S. Assistant Trade Representative Brendan Lynch met Indian counterparts in New Delhi on September 16, followed by a visit from U.S. ambassador-designate Sergio Gor, a close Trump ally, who also met Prime Minister Narendra Modi.

The two sides reportedly discussed tariff rollbacks, energy trade, and regulatory cooperation. The issue was also raised during recent U.S. visits by External Affairs Minister S. Jaishankar and Commerce Minister Piyush Goyal.

Trump reiterated his long-held view that “economic security is national security,” adding that the global trade system “is broken and needs reform.” He said, “Around the world, we’re signing one trade deal after another to balance our relationships based on reciprocity.”

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Controversial Claim: “Tariffs Stopped India–Pakistan War”

In a more contentious part of his address, Trump revived his disputed narrative about mediating peace between India and Pakistan during Operation Sindoor, India’s precision strikes on terrorist targets in Pakistan and Pakistan-Occupied Kashmir (PoK) in May.

He claimed that threatening both nations with 250% tariffs prompted them to halt hostilities within 48 hours, saying, “We had no war, no people killed. It makes me feel so good. We saved millions and millions of lives.”

Trump further alleged that he had personally spoken to Prime Minister Narendra Modi and Pakistan’s Prime Minister Shehbaz Sharif, insisting that trade leverage helped end what he called “eight wars in eight months.”

However, Indian officials have categorically rejected these claims, reiterating that the decision to de-escalate was reached solely through military channels between India and Pakistan on May 10, without any U.S. involvement.

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India’s Diplomatic Response

People familiar with the matter said Indian diplomats were concerned by Trump’s repeated public references to private conversations with foreign leaders, often without coordination or consent — a deviation from standard international diplomatic protocol.

During a subsequent call between Modi and Trump on June 17, Indian officials reportedly clarified that there had been no mediation or linkage to any trade deal during or after the conflict.

The Ministry of External Affairs (MEA) has previously dismissed Trump’s assertion, and PIB Fact Check labelled related online content as “false and misleading.”

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Praise for Pakistan and Modi’s “Toughness”

Trump also lauded Pakistan Army Chief Field Marshal Asim Munir, calling him “a great fighter,” and described Modi as “tough as hell.” He recounted their purported conversation in dramatic fashion, saying Modi initially told him, “We will fight,” before agreeing to stop.

Defence experts in New Delhi view such statements as politically motivated rhetoric rather than policy declarations. “Trump often uses exaggerated storytelling to highlight his negotiating prowess. But in matters involving nuclear neighbours, such claims are diplomatically sensitive,” said Dr. Aparna Pande, a South Asia specialist at the Hudson Institute.

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Trade Over Tensions

Despite the controversy, Trump’s renewed emphasis on trade ties with India may signal a pragmatic shift. Analysts suggest that, if re-elected, Trump’s administration could pursue a tariff-linked strategic partnership aimed at reducing U.S. trade deficits and countering China’s dominance in Asia.

“India–U.S. trade relations remain crucial for both economies. Trump’s remarks show his intent to revisit bilateral trade cooperation, but such talks will need careful navigation given his history with tariffs,” said Professor Amitabh Mattoo, an expert on India–U.S. relations.

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Background: Operation Sindoor and Its Fallout

The May 2025 hostilities between India and Pakistan were triggered after India struck multiple terror camps across the border in retaliation for the Pahalgam terror attack in April. The four-day conflict saw intense air activity before de-escalation began on May 10.

Pakistan later nominated Trump for the Nobel Peace Prize for his claimed role in “preventing a regional war” — a nomination widely viewed as symbolic rather than substantive.

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A Balancing Act Between Trade and Diplomacy

While Trump’s comments have reignited debate about his unconventional diplomatic style, they also underline the U.S.’s renewed focus on economic diplomacy as a strategic tool. As he put it, “Everyone is better off when we have stable partnerships not plagued by chronic problems and imbalances.”

For New Delhi, however, the priority remains ensuring that trade and security discussions progress on factual, mutually respectful terms — without being clouded by political