Is Trump sacrificing US-India ties for family business in Pakistan? Ex-US NSA Jake Sullivan drops bombshell

US President Donald Trump’s tariff action on India for its continued purchase of Russian oil has rumour mills working overtime about why Washington is singling out a longtime strategic partner.

A recent New York Times report pointed to a sharp downturn in ties after a June 17 phone call between Trump and Prime Minister Narendra Modi.

Trump, who has repeatedly claimed he “solved” the decades-old conflict between India and Pakistan, reportedly told Modi that Islamabad planned to nominate him for a Nobel Peace Prize, with the “not-so-subtle implication” that India should follow suit.

Modi rejected the idea, insisting the recent cease-fire with Pakistan had been reached without US involvement, according to the report, which cited interviews with more than a dozen people in Washington and New Delhi. The two leaders have not spoken since.

Now, a former top Biden administration official has added a new dimension to the controversy. Jake Sullivan, who served as US national security adviser, said Trump undermined relations with India over his family’s business deals in Pakistan.

In an interview with the MeidasTouch YouTube channel, Sullivan called the move a “huge strategic harm” to American interests.

When asked about the ongoing controversy over the stalled trade deal with India and Trump's repeated claims about resolving the India-Pakistan conflict, Sullivan said, “I think this is one of the more under-reported stories in Trump’s foreign policy.”

Sullivan stressed that Washington had spent decades building bipartisan ties with India, “a country that we should be aligned with on technology, talent, economics, and so many other issues, and aligned with in dealing with the strategic threat from China.”

"And now, in no small part, I think because of Pakistan's willingness to do business deals with the Trump family, he has thrown the India relationship over the side. That is a huge strategic harm in its own right because a strong US-India relationship serves our interests," Sullivan added.

He said that the shift will make allies from Germany to Japan wary of US commitments.

“Our word should be our bond. We should be good for what we say,” Sullivan said. “What’s happening with India right now has huge direct impacts. But it also reverberates across all our relationships and partnerships in the world.”

Trump’s business links with Pakistan

In April, World Liberty Finance — a decentralised finance platform in which Trump and his affiliates reportedly hold a 60% stake — signed agreements with the Pakistan Crypto Council to promote blockchain investment. A US delegation at the ceremony included Zachary Witkoff, son of Trump envoy Steve Witkoff.

In June, Pakistan’s army said Field Marshal Asim Munir and Trump met at the White House to discuss trade, economic development and cryptocurrency. The following month, Trump announced a trade deal with Pakistan, pledging US support for Islamabad’s “massive oil reserves,” while imposing 25% tariffs on Indian goods.

He later imposed an additional 25% tariff for India's continued purchase of Russian crude oil.

Since then, Trump and his aides have stepped up criticism of New Delhi, even labelling the Russia-Ukraine war as “Modi’s war.”