NextFin news, US President Donald Trump on Monday, October 6, 2025, reiterated his claim that his administration's tariff strategy played a crucial role in averting a military conflict between India and Pakistan. Speaking in the Oval Office, Trump stated that his use of tariffs and trade threats helped push the two nuclear-armed neighbors toward a ceasefire during heightened tensions earlier this year.
Trump asserted, "If I didn't have the power of tariffs, you would have at least four of the seven wars raging... If you look at India and Pakistan, they were ready to go at it. Seven planes were shot down... I don't want to say exactly what I said, but what I said was very effective... Not only did we make hundreds of billions of dollars, but we're a peacekeeper because of tariffs." He emphasized that tariffs are not only a revenue source but also a diplomatic tool that contributes to global peacekeeping.
The US president claimed that his tough trade stance, including threats to cut off trade, was instrumental in convincing both India and Pakistan to halt hostilities. He described his tariff policies as a central pillar of his foreign policy and conflict resolution approach.
However, India's Ministry of External Affairs has categorically denied Trump's claims, stating that all issues between India and Pakistan are bilateral and that no third-party mediation or trade threats were involved in the ceasefire process. According to official Indian sources, the ceasefire understanding was reached after direct communication between the Director Generals of Military Operations (DGMO) of both countries, following calls from US Vice President JD Vance and Secretary of State Marco Rubio, who advised that any ceasefire request should come from Pakistan.
Pakistan, in contrast, has nominated Trump for the 2026 Nobel Peace Prize, recognizing his "decisive diplomatic intervention and pivotal leadership" during the recent India-Pakistan crisis.
The India-Pakistan conflict escalated earlier this year following the Pahalgam terror attack in Jammu and Kashmir, which led India to launch Operation Sindoor targeting terror camps inside Pakistan. The ensuing military exchanges included the downing of seven planes, raising fears of a broader war between the two nuclear powers.
Trump's repeated claims of brokering peace through tariffs have drawn mixed reactions internationally, with some viewing his statements as an attempt to highlight his administration's foreign policy achievements, while others question the accuracy and role of tariffs in the conflict's resolution.
In addition to his comments on India-Pakistan, Trump also expressed optimism about a potential peace deal in Gaza, where indirect talks between Hamas and Israel began in Egypt on the eve of the second anniversary of the October 7, 2023 attack. He outlined a 20-point plan calling for an immediate ceasefire contingent on hostage releases and disarmament, underscoring his continued involvement in international conflict mediation.
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