Key Highlights:
- US to help Pakistan develop oil reserves; American firm to be selected.
- India slapped with 25 percent tariff plus extra penalty for Russian ties.
- Trade talks between India and US face fresh hurdles.
New Delhi: US President Donald Trump has said that Pakistan and the United States have reached a new deal to jointly develop Pakistan’s oil reserves. The announcement was made on his social media platform, Truth Social, where Trump added that an American oil company will be chosen soon to lead this partnership.
In a tone laced with speculation, Trump remarked, “Who knows, maybe they’ll be selling oil to India someday!” This comes at a time when Pakistan imports most of its energy and has limited oil production of its own.
India Faces Tariffs, Penalty Over Russian Ties
Just hours before announcing the Pakistan deal, Trump declared that Indian goods will face a 25 percent tariff starting August 1, due to India’s continued imports of Russian oil and military equipment. He also warned of an unspecified penalty, which could be as high as 100 percent, based on earlier statements by US officials.
Trump criticized India’s high tariffs, trade barriers, and close ties with Russia, saying:
“India is our friend, but they buy most of their military gear from Russia and are one of its top energy buyers — not good!”
India’s Oil Dependency and Trade Dynamics
India is the world’s third-largest consumer of oil, and imports around 88 percent of its needs. Currently, Russia is India’s largest oil supplier, with a 40 percent share, followed by Iraq, Saudi Arabia, UAE, and the United States.
While the US is a key oil supplier to India, Washington is now pressuring India to cut Russian imports as part of broader efforts to end the Russia-Ukraine war.
Trade Talks Strained, Interim Deal Unlikely Soon
Trump’s new tariffs come at a sensitive time, as India and the US are negotiating a trade deal. The sixth round of talks is expected in August, but an agreement may not come before September or October.
Experts believe the 25 percent tariff was already expected by Indian policymakers, but the additional penalty could be a major setback. India may now push harder for a discounted tariff rate, similar to deals made recently with other countries.
Regional Tensions and Political Messaging
Trump’s remarks come amid rising India-Pakistan tensions, especially after a terror attack in Pahalgam in May, blamed on Pakistan-backed militants. While Trump claims he helped broker a ceasefire between the two nations, India denies any third-party mediation.
Meanwhile, Trump said his administration is busy finalising trade deals with other countries too. He mentioned a 25 percent tariff on South Korea, hinting at ongoing talks to reduce it in exchange for better US trade terms.
“All this will help reduce our trade deficit,” Trump added.
