(MENAFN- Live Mint) United States President Donald Trump claimed that his threat to impose a 200% tariff on exports from the two South Asian neighbours was instrumental in stopping the India-Pakistan war. He said he was in contact with both nations about trade.

Speaking to reporters on Monday as he flew to the Middle East ahead of a hostage-prisoner swap between Israel and Hamas, the American leader said,“We stopped a lot of these wars using trade. As an example, India and Pakistan were going at it really hard. Seven planes were shot down...Bad things were happening, and I was talking to both of them about trade...I said we are not going to do a trade deal unless they stop the war,” Trump said, as per ANI.

He added,“I got him on the phone and I said, listen, we're going to put a 200% tariff on your country for any product you sell into the United States unless you stop this war...I spoke to the leaders of both nations. I like them both. But I said that's the way it is, and I get a call the next day, we have decided to de-escalate...We have decided that we will not fight...I love stopping wars.”

Trump lauded Prime Minister Narendra Modi as a“great man” and said they have a“great relationship". Both spoke last week to assess trade talks, with Modi saying“good progress” had been made in negotiations.

India's Russian oil purchases

Trump had called out India for purchasing Russian oil, arguing that it was fueling President Vladimir Putin's invasion of Ukraine . However, India defended the imports as essential for maintaining the country's energy security.

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“If India doesn't buy oil, it makes it much easier. And they'll go back to buying oil after the war's over, Trump stated. While Indian refiners have continued sourcing oil from Russia, New Delhi has made other trade concessions to Washington, including offering to eliminate tariffs on US auto parts and steel, provided the Trump administration does the same in return, according to AFP.

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Relations between the US and India have become increasingly tense following Trump's decision to impose a 50% tariff on Indian goods, a measure he described as retaliation for New Delhi's continued imports of Russian oil. The strain deepened further when the administration introduced a $100,000 fee on new H-1B visa applications, a programme heavily relied upon by Indian tech professionals seeking employment in the United States.

(With inputs from agencies)

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