Trump’s Trade Twist: Tariffs on India, Oil Partnership with Pakistan

US President Cites Trade Deficit and Russian Oil Purchases for New Indian Duties, While Touting Joint Venture to Develop Pakistan’s “Massive” Oil Reserves and Hinting at Regional Energy Shifts

Washington, D.C. [US]: President Donald Trump made a shocking announcement on Wednesday (local time): a new trade pact with Pakistan. This came just hours after he said that Indian imports would be hit with a 25% tax and other penalties starting on August 1st. According to a post on his Truth Social platform, this agreement is for the United States and Pakistan to work together to develop what Trump called Pakistan’s “massive Oil Reserves.” He even suggested that “some day” Islamabad might sell oil to New Delhi

Trump wrote on Truth Social that the new collaboration was “just concluded” with Pakistan: “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.” We are currently deciding which oil company will be in charge of this partnership. Who knows, maybe one day they’ll export oil to India! This comment, especially the mention of India as a possible future buyer, adds a new layer to the complicated political and economic situation in South Asia, which just got worse when tariffs were put on a significant player in the region.

Trump said that the tariffs on India were fair because the US has a trade deficit with India. The levies also include penalties for New Delhi’s continued purchase of Russian oil and armaments. Since February 2022, when Western countries put sanctions on Moscow, India has greatly increased its imports of cheap Russian crude oil. This growth has made Russia the main supplier, providing over 35% of India’s crude oil imports in FY2025, up from only 2% in FY2020. The US thinks these deals hurt attempts around the world to isolate Russia. India has mostly countered this by talking about its own energy security and the need for a wider range of supplies.

Trump also hinted at bigger trade talks in the same Truth Social post, which means the White House is currently working on new deals. “We are quite busy in the White House today making trade deals. I have talked to the leaders of several countries, and they all want to make the United States “extremely happy.” This afternoon, I will meet with the South Korean Trade Delegation. South Korea’s current tariff is 25%, but they can buy it down. He replied, “I will be interested in hearing what that offer is,” which suggests that he plans to use tariffs to get concessions from trading partners.

He also said that “many countries are currently offering the US ‘Tariff reduction.'” Trump ended his article by stressing the main point: “All of this will help us cut our trade deficit by a huge amount.” There will be a complete report at the right time. Thanks for taking the time to look into this. “MAKE AMERICA GREAT AGAIN!”

Details about the US-Pakistan oil deal are still hard to come by, although Pakistan does have proven oil reserves. However, they are not very big compared to other countries (approximately 353.5 million barrels as of 2016, making them the 52nd largest in the world). The idea of Pakistan selling oil to India, especially since India has such a high demand for energy, might change the way energy works in the region in a big way, albeit it’s still only a theory. This news shows that Trump is still focused in changing trade relationships throughout the world, often using a mix of protectionist measures and surprising diplomatic moves. As the August 1st deadline approaches, the next few days are expected to show what these new trade moves will mean right away.