Does this verse command violence to one’s neighbors and countrymen?
Answer
Like the whole of Surat al-Tawbah, this verse must be understood in the context in which it was revealed to the Prophet Muhammad ﷺ and his companions, who were instructed to direct their military efforts towards facing threats posed by the neighboring Byzantine regions after dealing with the immediate conflicts in the Hijaz region.
A broader point derived from the verse is that when a threat is posed, priority is given to the most imminent. Another is that an enemy ought to be made to respect the strength of the Muslim forces, lest they take advantage of perceived weakness and make incursions into Muslim territories.
The verse is by no means a general command to fight, nor does it imply that everyone who is a non-believer must be fought. To suggest otherwise is a blatant distortion of its words.
The general rule is that peaceful relations are maintained with all people, but the exceptions are those who were actively hostile to the Muslims: “Allah does not forbid you from dealing kindly and fairly with those who have neither fought nor driven you out of your homes. Surely Allah loves those who are fair.” (60:8).
Summary
This verse has a specific historical context and generally instructs Muslims to face imminent threats first. It is not a general point about fighting people for not following the religion.