Trump announces US will develop 'massive' oil reserves in Pakistan, says they might sell to 'India some day'
US President Donald Trump has announced a 25% tariff and additional penalties on Indian imports, citing trade imbalance and India’s oil purchases from Russia. Just hours later, he revealed a fresh energy deal with Pakistan to jointly develop the country’s oil reserves. Trump suggested the partnership could even lead to Pakistan exporting oil to India one day. While trade talks with New Delhi continue, the US is also fielding offers from other countries on tariff reductions to ease its trade deficit.
In a striking shift in trade policy, US President Donald Trump on Wednesday announced two major decisions within hours. First, a 25% tariff and additional penalties on Indian imports. Then, a new trade agreement with Pakistan to jointly develop its oil reserves.
The tariff on India, effective from 1 August, stems from what Trump called an unfair trade imbalance and India’s ongoing oil purchases from Russia.
“BRICS, which is basically a group of countries that are anti the United States and India is a member of that if you can believe it... It is an attack on the dollar and we are not going to let anybody attack the dollar. So it’s partially BRICS and it’s partially trade,” Trump told reporters, explaining the motivation behind the penalties.
Energy partnership with Islamabad
Hours later, Trump took to his social media platform Truth Social to unveil a US-Pakistan oil agreement.
“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 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!” he wrote.
The statement marks a rare moment of trade optimism between Washington and Islamabad, whose relations have often been shaped by regional tensions and security interests.
Trump didn’t name the oil companies being considered or provide details on timelines. The Pakistani embassy in Washington did not immediately comment.
Trade talks already in motion
This deal isn’t entirely out of the blue. Last week, Pakistan’s Foreign Minister Ishaq Dar said a US-Pakistan trade agreement was “very close” following his meeting with US Secretary of State Marco Rubio.
The two officials discussed expanding cooperation in minerals and mining, according to statements from both governments. Other senior Pakistani officials have also held meetings in the US in recent weeks.
The US sees Pakistan as a major non-NATO ally, and the new energy push appears to align with Washington’s larger strategic interests in Asia, particularly to counter Chinese influence.
Busy day at the White House
Trump also gave a broader update on his trade agenda, suggesting more tariff changes are on the horizon.
“We are very busy in the White House today working on Trade Deals. I have spoken to the Leaders of many Countries, all of whom want to make the United States ‘extremely happy’. I will be meeting with the South Korean Trade Delegation this afternoon. South Korea is right now at a 25% Tariff, but they have an offer to buy down those Tariffs. I will be interested in hearing what that offer is,” he posted.