India-Pakistan’s ‘tenuous ceasefire’ achieved only after US offered trading access to them: Trump administration

The Trump administration has told a New York court that India and Pakistan reached a ceasefire only after the US offered both nations trading access to avert a full-scale war. However, the Indian government has maintained that the two countries agreed to ceasefire without a third-party involvement. 

Commerce Secretary Howard Lutnick said the maintenance of tariffs is crucial to the president’s ability to conduct real-world diplomacy. The argument was presented during a submission to the Court of International Trade last week. They argued that Trump used his emergency powers under the International Emergency Economic Powers Act (IEEPA) to impose tariffs aimed at protecting security and the economy. 

In the submission, Lutnick said, “For example, India and Pakistan - two nuclear powers engaged in combat operations just 13 days ago - reached a tenuous ceasefire on May 10, 2025. This ceasefire was only achieved after President Trump interceded and offered both nations trading access with the United States to avert a full-scale war."

“An adverse ruling that constrains presidential power in this case could lead India and Pakistan to question the validity of President Trump's offer, threatening the security of an entire region, and the lives of millions,” he said.

Lutnick highlighted the importance of the IEEPA in allowing the US president to respond promptly and decisively to national emergencies through economic and commercial measures. He warned that invalidating President Trump's ability to use IEEPA would weaken national security and disrupt foreign policy-related economic actions. Such invalidation could jeopardise trade agreements, halt ongoing negotiations, encourage Chinese aggression during strategic competition, expose Americans to predatory economic practices, and threaten national security, he argued.

A three-judge panel of the Court of International Trade ruled that Trump’s global tariffs were contrary to law. Trump had announced reciprocal tariffs on several countries, including India and China on April 2. On April 9, he suspended the tariffs for a period of 90 days, except in China and Hong Kong. 

After the India-Pakistan ceasefire, Trump claimed several times that he played a mediating role.