Trump said, his relations with both India and Pakistan are good, and his offer to mediate remains, but it is for both New Delhi and Islamabad to accept. He went on to say that the relationship between the two nuclear-capable South Asian neighbours is "less heated" than earlier.
"India and Pakistan are having a conflict over Kashmir, as you know. I think (it) is a little bit less heated right now than (what) was two weeks ago," Trump told the press.
Trump had first claimed that Indian Prime Minister Narendra Modi had sought his help to resolve the Kashmir issue, a claim emphatically rejected by New Delhi. The claim was made during a meeting with Pakistan Prime Minister Imran Khan during the latter's visit to Washington in July.
During his meeting with Prime Minister Modi on the sidelines of the G-7 Summit in the French town of Biarritz, the US President made a U-turn and said, India and Pakistan can resolve the issue themselves.
Trump's latest statement comes ahead of the Indian leader's visit to the United States, later this month when the US leader will meet with Prime Minister Modi.
The tensions between India and Pakistan heightened after New Delhi stripped Jammu and Kashmir of its special status in early August. The federal government has also divided the state into two federally administered territories.
Unhappy with the decision, Islamabad mounted a diplomatic offensive against New Delhi to internationalise the Kashmir issue, also downsizing its mission in New Delhi, and suspending all communications and trade with India.
Pakistan claims, it is a stakeholder in Kashmir, and India's unilateral decision was unacceptable. India however, dismissed these claims saying the matter was India's internal issue.
Kashmir has been a bone of contention between the two countries since they gained freedom from British colonial rule in 1947. Both govern it in parts but claim the territory in full.