Trump says he used trade as leverage to prevent possible nuclear war between India and Pakistan

President Donald Trump on Friday said he had helped India and Pakistan avert a nuclear war by using trade with the US as leverage to push for a ceasefire.

The South Asian neighbours exchanged artillery, plane and drone strikes this month after gunmen killed 26 people in April in the Himalayan tourist spot of Pahalgam in the Kashmir valley. India accused Pakistan of backing the attack, which Islamabad has denied.

“We stopped India and Pakistan from fighting, I believe that could have turned out into a nuclear disaster,” Mr Trump said in the Oval Office on Friday.

“We dropped trade, and we said we can't trade with people that are shooting at each other and potentially using nuclear weapons. … They're great leaders in those countries, and they understood, and they agreed, and that all stopped.”

Mr Trump infuriated New Delhi this month when he announced the US had “mediated” a ceasefire. Not only did his announcement pre-empt India making a statement, New Delhi has long maintained that any issues with Pakistan, including over the disputed Kashmir region, can only be addressed bilaterally and without the intervention of a third country.

India has insisted the recent cessation of hostilities with Pakistan was decided through direct contacts between the two countries' armies.

US President Donald Trump's Truth Social posting about the India-Pakistan crisis on May 10, 2025

During an Indian Ministry of External Affairs news conference on Thursday, a spokesman said trade discussions never came up in ceasefire talks.

“The issue of trade or tariff did not come up in any of those discussions,” said Randhir Jaiswal.

Pakistani Prime Minister Shehbaz Sharif welcomed Mr Trump's mediation and his “very pivotal and paramount role” in ending the crisis.

According to US figures, trade between America and India totalled about $129.2 billion last year, compared to $7.3 billion between the US and Pakistan.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks.

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.

8. Pillar 2 implementation

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Classification of skills

A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.

A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.

The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.

UAE currency: the story behind the money in your pockets

While you're here

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Rebecca Bundhun: Will India's new farm laws cause farmers economic pain?

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Rebecca Bundhun: India needs to address its unemployment crisis

Jigra

Director: Vasan Bala

Starring: Alia Bhatt, Vedang Raina, Manoj Pahwa, Harsh Singh

Rated: 3.5/5

Who is Mohammed Al Halbousi?

The new speaker of Iraq’s parliament Mohammed Al Halbousi is the youngest person ever to serve in the role.

The 37-year-old was born in Al Garmah in Anbar and studied civil engineering in Baghdad before going into business. His development company Al Hadeed undertook reconstruction contracts rebuilding parts of Fallujah’s infrastructure.

He entered parliament in 2014 and served as a member of the human rights and finance committees until 2017. In August last year he was appointed governor of Anbar, a role in which he has struggled to secure funding to provide services in the war-damaged province and to secure the withdrawal of Shia militias. He relinquished the post when he was sworn in as a member of parliament on September 3.

He is a member of the Al Hal Sunni-based political party and the Sunni-led Coalition of Iraqi Forces, which is Iraq’s largest Sunni alliance with 37 seats from the May 12 election.

He maintains good relations with former Prime Minister Nouri Al Maliki’s State of Law Coaliton, Hadi Al Amiri’s Badr Organisation and Iranian officials.

The specs: Macan Turbo

Engine: Dual synchronous electric motors
Power: 639hp
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On sale: Deliveries start in October

Tips for job-seekers

Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.

David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East