US President Donald Trump has announced a new oil trade deal with Pakistan, suggesting the agreement could one day open the door for Pakistani oil exports to India. The development comes hours after Trump declared a 25 per cent tariff, along with additional penalties, on imports from India, a move set to take effect on August 1.
In a statement on Wednesday, Trump said Washington and Islamabad had agreed to work together to develop Pakistan’s ‘massive oil reserves’, adding that the venture could eventually benefit New Delhi.
“We have just concluded a deal with Pakistan, whereby Pakistan and the United States will work together on developing their massive oil reserves,” Trump said. “Who knows, maybe they’ll be selling oil to India some day.”
Trump made the comments on Truth Social while outlining a day he described as ‘very busy’ with trade negotiations. He reiterated that India’s continued energy ties with Russia and what he called restrictive trade barriers were among the key reasons behind the new tariffs targeting Indian goods.
“I have spoken to the leaders of many countries, all of whom want to make the United States ‘extremely happy’,” Trump wrote. “All of this will help reduce our trade deficit in a very major way.”
Trump said his administration was now in the process of selecting an oil company to lead the US-Pakistan energy project, though he did not name any firms or specify when development would begin.
Only last week, Pakistan’s Foreign Minister Ishaq Dar had signalled that Islamabad and Washington were ‘very close’ to finalising a trade deal, following his meeting with Secretary of State Marco Rubio on Friday.
In separate statements following that meeting, both the US State Department and Pakistan’s Foreign Ministry said the two sides had agreed on the importance of expanding bilateral trade and working more closely in sectors such as critical minerals and mining.
Meanwhile, Trump also confirmed plans to meet a South Korean trade delegation to discuss possible tariff reductions. “South Korea is right now at a 25 pc tariff, but they have an offer to buy down those tariffs,” he said. “I will be interested in hearing what that offer is.”
Trump hinted that other countries too were making similar overtures as part of what he described as a wider effort to rebalance America’s trade relationships.
“A full report will be released at the appropriate time,” Trump said.
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