Trump says 200% tariff threat forced India-Pakistan ceasefire: ‘Nothing like money’

Speaking at his Board of Peace event, Trump said he had warned both countries that the United States would impose 200% tariffs if they failed to de-escalate tensions.

The President also claimed that 11 “very expensive jets” were shot down during the military confrontation that began after India's Operation Sindoor, launched in response to the killing of 26 tourists in Jammu and Kashmir’s Pahalgam.

“...That war was raging. Planes were being shot down. And I got on the phone with both of them, and I knew them a little bit. I knew Prime Minister Modi very well... I called them and said, 'listen, I'm not doing trade deals with you two guys if you don't settle this up',” Trump said.

He added that economic pressure played a decisive role in calming the situation.

“And all of a sudden, we worked out a deal. I said, if you fight, I'm going to put 200 per cent tariffs on each of your countries. They both wanted to fight. But when it came to money, it's nothing like money. When it came to losing a lot of money, they said, 'I guess we don't want to fight'... 11 jets were shot down. Very expensive jets,” he said in presence of Pakistan Prime Minister Shehbaz Sharif.

Trump also mentioned speaking with Indian Prime Minister Narendra Modi, saying, “Pakistan and India, that was a big one. Pakistan and India, thank you very much. I spoke to Prime Minister Modi. He's excited. He's watching us right now.”

However, India has consistently maintained that no foreign intervention was involved in the ceasefire decision during Operation Sindoor, which was launched on May 7.

Prime Minister Modi rejected Trump’s claim, stating that “no global leader” urged India to halt the operation.

“India's policy, which was well-considered and thoroughly discussed with our military, was that our targets are terrorists, their masterminds, and their hideouts. We clearly stated from the beginning that our actions were non-escalatory, which is why we agreed to a ceasefire,” Modi said in Parliament.

Modi also referred to a conversation with US Vice President JD Vance, who had conveyed intelligence about a possible Pakistani offensive.

“No global leader urged India to halt the operation. On the night of May 9, the Vice President of the United States attempted to contact me. He tried for an hour, but I was in a meeting with the military and was unable to answer,” Modi said.

“Later, I returned his call. During our conversation, the Vice President informed me that Pakistan was planning to launch a major offensive. In response, I firmly stated, ‘If this is Pakistan's intent, they will face dire consequences,’” he added.