Ceasefire To Tariffs: How A Modi-Trump Call Post India-Pakistan Clash May Have Sparked A Rift

When India and Pakistan agreed to a ceasefire in May, US President Donald Trump repeatedly claimed credit for brokering the peace and this prompted a public pushback from New Delhi. In a tense June 17 call, Prime Minister Narendra Modi told Trump India “will never accept mediation” and stressed the truce was arranged directly with Pakistan.

The tensions also deepened when India learned Trump planned to host Pakistan’s army chief, according to report by Bloomberg.

The fallout marked a turning point: the White House tone shifted, Trump began attacking India, and eventually slapped a 50% tariff on Indian exports — citing trade imbalances and Russian oil purchases. The dispute has derailed decades of US efforts to woo India as a counterweight to China, while prompting Modi to revive ties with Moscow and even open channels with Beijing.

Trade talks have stalled amid clashes over agriculture, steel, and genetically modified crops.

Although India calls the tariffs “unfair” and vows to protect farmers, it is weighing limited concessions, according to Bloomberg. Analysts warn Trump’s hardball tactics could drive India closer to China and Russia, undermining long-term US strategic interests.

Prime Minister Narendra Modi on Friday spoke with Russian President Vladimir Putin on the latest developments concerning Ukraine. The leaders further reaffirmed their commitment to further deepen India-Russian ties.

The US President has also announced that he plans to meet with Putin next Friday in Alaska, as Trump looks to broker a ceasefire agreement in hopes of bringing an end to the war in Ukraine.

Meanwhile, Trump in a post on Truth Social issued a stark warning that the United States could face an economic collapse akin to the 1929 Great Depression if a federal court were to strike down his tariff policies.