Trump says US ‘very close' to trade deal with India, warns of fallout if India-Pakistan conflict escalates

Indian Express

2 days ago

US President Donald Trump on Friday said the United States is 'very close to making a deal with India'. He repeated his claim that Washington was able to avert a 'nuclear war', saying 'normally they do it through bullets. We do it through trade'.
Speaking to reporters at Joint Base Andrews, Trump said: 'Pakistan representatives are coming in next week. We're very close to making a deal with India.' However, he cautioned that continued tensions between India and Pakistan could jeopardise progress. 'And I wouldn't have any interest in making a deal with either if they were going to be at war with each other,' he said.
#WATCH | US President Donald Trump says, 'Pakistan representatives are coming in next week. We're very close to making a deal with India. And I wouldn't have any interest in making a deal with either if they were going to be at war with each other…'
(Source: US Network Pool… https://t.co/DO7Dh6YOd7 pic.twitter.com/5Cmwg5LAdh
— ANI (@ANI) May 31, 2025
Trump's comments come against the backdrop of rising hostilities between the two neighbouring countries, following India's 'Operation Sindoor' on May 10—a counterstrike in response to the April 22 terror attack in Pahalgam that killed 26 people.
Trump has continuously reiterated that US trade diplomacy played a key role in averting conflict between India and Pakistan.
'We talk trade, and we say we can't trade with people who are shooting at each other and potentially using nuclear weapons… They understood and they agreed, and that all stopped,' he said during an Oval Office briefing on Friday.
'I think the deal I'm most proud of is the fact that we're dealing with India, we're dealing with Pakistan, and we were able to stop potentially a nuclear war through trade as opposed to bullets. You know, normally they do it through bullets. We do it through trade. So I'm very proud of that. Nobody talks about it. But we had a very nasty potential war going on between Pakistan and India. And now, if you look, they're doing fine,' he said later in the day.
#WATCH | US President Donald Trump says, 'I think the deal I'm most proud of is the fact that we're dealing with India, we're dealing with Pakistan, and we were able to stop potentially a nuclear war through trade as opposed through bullets. You know, normally they do it through… pic.twitter.com/63wkY2O054
— ANI (@ANI) May 31, 2025
Trump announced worldwide tariffs on April 2, with Indian exports facing the prospect of a 26 per cent tariff. Meanwhile, Pakistani exports were hit with duties of up to 29 per cent.
To avert economic fallout, Indian Union Minister Piyush Goyal visited Washington recently to push bilateral trade negotiations forward. An interim deal is expected by early July.
The Indian Ministry of External Affairs confirmed that Foreign Secretary Vikram Misri was in Washington from May 27–29. His meeting with US Deputy Secretary of State Christopher Landau was described as a 'great first meeting' that covered a wide range of shared priorities.
Citing progress in talks, Reuters reported that India is likely to open up its government procurement market to American companies, potentially unlocking over $50 billion in contracts for US firms.