Trump strikes oil deal with Pakistan, says 'maybe they'll sell to India'

Trump announced a new oil partnership with Pakistan via Truth Social, saying both the nations would jointly develop reserves and hinting that Islamabad may one day supply oil to India

US President Donald Trump on Wednesday (local time) announced a new energy partnership with Pakistan, just hours after imposing 25 per cent tariffs and additional penalties on Indian imports. Under the deal, the US and Pakistan will jointly explore and develop oil reserves in Pakistan. Trump also said that Pakistan could potentially export oil to India in the future.

 

The announcement was made via a post on Trump’s social media platform, Truth Social. “We have just concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will work together on developing their massive Oil Reserves,” Trump wrote. “We are in the process of choosing the Oil Company that will lead this Partnership. Who knows, maybe they'll be selling Oil to India some day!”

 

 

Trump added that the administration is in the process of selecting an oil company to lead the US-Pakistan energy partnership, though he did not name any firms or indicate when the project would begin. The announcement follows Pakistani Foreign Minister Muhammad Ishaq Dar’s remarks last week that the two countries were “very close” to finalising a trade deal. Dar made the comments after meeting US Secretary of State Marco Rubio on Friday.

 

Trump imposes 25% tariffs on Indian goods

 

The development comes on the same day Trump announced a 25 per cent tariff, along with additional penalties, on goods imported from India. The new duties are set to take effect from August 1. Trump cited high trade barriers and India's purchases of energy and military equipment from Russia as the key reasons behind the trade move. 

 

Trump also said the penalties were driven partly by trade-related concerns and partly due to India’s participation in the Brics group of developing nations, which he described as hostile to the US. Earlier in July, Trump had warned that the US would impose an additional 10 per cent tariff on any country that aligns itself with what he called the “Anti-American policies” of Brics.

 

Trump sharply criticised India’s trade policies, describing them as “the most strenuous and obnoxious non-monetary trade barriers of any country.” The announcement came just two days before the expiry of a tariff pause, which the US, notably, extended for China on Tuesday.

 

India-US trade talks

 

The fresh tariffs are expected to impact India’s exports to the US, at a time when both countries are in the middle of intensive negotiations to resolve their ongoing trade disputes. Indian officials have held five rounds of discussions with their American counterparts, with a sixth round scheduled for late August. 

 

A major sticking point in the talks remains India’s firm stance against the import of genetically modified (GM) crops and American dairy products, issues that carry deep political and economic sensitivities in India’s vast agriculture and dairy sectors.

 

India assesses Trump’s tariff move, reaffirms commitment to talks

 

In its first official response to US President Donald Trump’s 25 per cent tariff move, the Indian government on Wednesday said it is examining the implications and remains committed to a fair and balanced trade deal with the US.

 

“The Government has taken note of the US President’s statement on bilateral trade. The Government is studying its implications,” the Ministry of Commerce and Industry said. It added that both countries have been in talks for several months to finalise a mutually beneficial agreement and that India remains committed to that goal.