Only hours after announcing a sharp 25 per cent tariff plus additional penalties on Indian imports, US President Donald Trump announced a new trade agreement with Pakistan.
In the announcement on Wednesday (local time), Trump cited plans for the two nations to work together to tap Pakistan's oil deposits — and even suggested that Islamabad might someday supply oil to India.
In a statement published on his Truth Social website, Trump wrote, "We have just closed a Deal with the Country of Pakistan, where Pakistan and the United States will join forces in the development of their enormous Oil Reserves. We are selecting the Oil Company that will head this Partnership. Who knows, perhaps they'll be selling Oil to India someday!"
The announcement followed his earlier decision to impose new trade restrictions on India, citing concerns over the large trade imbalance and New Delhi’s ongoing oil purchases from Russia. The fresh measures, set to take effect on August 1, include a 25 per cent tariff alongside a separate penalty.
Further expounding on a day spent in economic negotiations, Trump stated that he had been in talks with several world leaders, all of whom, in his opinion, are keen to oblige Washington in future trade deals.
"We are extremely busy in the White House today doing Trade Deals. I have talked to the Leaders of many Countries, all of which would like to make the United States 'very happy.' I will be seeing the South Korean Trade Delegation this afternoon. South Korea is currently at a 25% Tariff, but they have an offer to purchase down those Tariffs. I will be interested to hear what that offer is," Trump posted.
He also mentioned that talks with other countries are being pursued to reduce tariff barriers, which means more agreements could be in the offing.
"Similarly, other Nations are offering to make a Tariff reduction offer. All of these will assist us in reducing our Trade Deficit tremendously. A full report will be out at the right time. Thank you for your concern with this. MAKE AMERICA GREAT AGAIN!" he concluded.
Trump's gesture to Pakistan is also at a delicate moment, as New Delhi-Pakistan diplomatic ties continue to be strained — especially after the latest terror attack in Pahalgam. His proposal for Pakistan to possibly supply India with oil is bound to set the stage for controversy, particularly given his administration's biting criticism of India's recent energy deal with Russia.
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