Trump hints at swift India deal, dangles lollipop for Pakistan

Following a tense four-day military standoff, India and Pakistan have entered a fragile ceasefire as of May 10, reportedly brokered by the United States. US President Donald Trump praised the leadership of both nations for halting hostilities and announced plans to significantly boost trade with both, despite trade not being part of the official ceasefire talks.

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Experts believe that while this announcement maintains the status quo for India, it could potentially open up new trade incentives for Pakistan. Trump’s message on Truth Social emphasized appreciation for both nations and revealed his intent to enhance trade ties, signaling diplomatic and economic maneuvering in the background.

India and the US are expected to resume discussions on a bilateral trade deal later this month, with an Indian delegation heading to Washington. In parallel, Pakistan and the US reaffirmed their strategic and economic ties during a key meeting last week.

Trade figures highlight a significant gap between India and Pakistan’s trade relationship with the US. In 2024, US-India goods trade reached $129.2 billion, compared to just $7.3 billion with Pakistan. Despite this disparity, some experts warn that recent developments, including India’s missile strike on May 7 (Operation Sindoor), an IMF bailout for Pakistan on May 9, and the US-led ceasefire on May 10 suggest that Washington is treating both nations as equals, at least diplomatically.