“You’ve Got 24 Hours to Settle It”: Trump Describes Tariff Threats as Peace Tool

US President Donald Trump has once again claimed personal credit for de-escalating tensions between India and Pakistan following the military standoff in May, asserting that he used threats of trade retaliation and tariffs to pressure Prime Minister Narendra Modi into agreeing to a ceasefire.

Recounting his alleged intervention, Trump told reporters that he directly warned the Indian leadership against prolonging hostilities with Pakistan. “I don’t want to make a trade deal with you… You guys are going to end up in a nuclear war. Call me back tomorrow, but we’re not going to do any deals with you, or we’re going to put tariffs on you that are so high, your head’s going to spin,” the American President said. According to him, New Delhi and Islamabad reached an understanding “within about five hours” of his conversation with PM Modi.

Trump further argued that his negotiating strategy—linking tariffs and trade access with conflict resolution—had been used in multiple global situations. He claimed to have “stopped seven wars,” four of them through economic coercion, and described the India-Pakistan confrontation as “the next level that was going to be a nuclear war.”

#WATCH | "...I am talking to a very terrific man, Prime Minister of India, Narendra Modi. I said what's going on with you and Pakistan. Then I am talking to Pakistan about trade. I said what's going on with you and India? The hatred was tremendous. This has been going on for a… pic.twitter.com/gJVOTmKjXN

— ANI (@ANI) August 27, 2025

India’s Firm Rebuttal

New Delhi has categorically dismissed these assertions. Officials have consistently maintained that the ceasefire understanding with Pakistan was reached directly through the established channel of communication between the Directors General of Military Operations (DGMOs) of the two countries. Prime Minister Narendra Modi, in earlier statements in Parliament, underlined that no foreign leader or government acted as mediator in the decision to halt operations during Operation Sindoor.

India also points to historical context: while Trump described Indo-Pakistan hostility as stretching back “hundreds of years,” the two nations have been independent states only since 1947, following the end of British colonial rule. Prior to that, the subcontinent consisted of smaller princely states and provinces rather than modern nation-states.

Repeated Assertions From Trump

This is not the first time the former US President has asserted a mediatory role in South Asia. Since May 10, when he first announced via social media that Washington had facilitated a ceasefire after a “long night of talks,” Trump has reiterated his claim over 40 times. His comments have ranged from direct claims of brokering peace to suggestions that his threat of tariffs compelled India and Pakistan to step back from the brink.

Strategic Implications

Trump’s repeated claims highlight the American leader’s broader use of trade as a tool of geopolitical leverage. While his statements remain unverified and contradicted by India’s official position, they underscore Washington’s ambition to project itself as a decisive player in global conflict management.

For India, however, acknowledging any form of third-party intervention in its dealings with Pakistan runs counter to its long-standing policy of treating the matter as a strictly bilateral issue. By publicly rejecting Trump’s assertions, New Delhi has sought to reinforce the principle that external actors cannot dictate the course of its security decisions.

Outlook

With Trump continuing to project his presidency as one that “stopped wars,” his claims of brokering peace in South Asia are unlikely to fade. For India, the focus remains on safeguarding its diplomatic position that disputes with Pakistan are resolved bilaterally, without the involvement of external powers—an approach it has consistently upheld since independence.

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