Trump warns India-Pakistan tensions could derail US trade talks with both nations

US President Donald Trump has said that representatives from Pakistan will arrive in the United States next week to negotiate tariff relief, while also stating that Washington is “very close” to finalising a trade deal with India. However, he warned that any military escalation between India and Pakistan would halt trade agreements with both nations.

“If they’re going to be at war, I’m not interested in making deals with either of them,” Trump told reporters, referring to the recent rise in hostilities following the April 22 Pahalgam terror attack and India’s subsequent Operation Sindoor. The comment underscores growing concern in Washington over the risk of further conflict between the two nuclear-armed neighbours.

Pakistan is under pressure to avoid steep US tariffs—reportedly up to 29%—amid fears of losing its $3 billion trade surplus with America. Meanwhile, India is engaged in its own set of negotiations, with hopes of a limited trade agreement by July. US officials recently described ties with India as being at a "historic zenith", noting increasing cooperation in trade, immigration, and counter-narcotics.

Talks between Indian and US officials have also opened the door for American firms to potentially compete for over $50 billion in Indian federal contracts. However, Trump’s warning makes it clear that peace between India and Pakistan remains a critical precondition for moving forward.