‘Pakistan will sell oil to India…’: US-Pak oil deal and tariffs on India; key points
President Donald Trump announced that the US has finalised a trade deal with Pakistan to collaborate on the development of Pakistan’s “massive oil reserves.”
“We have just concluded a Deal … Pakistan and the United States will work together on developing their massive Oil Reserves … Who knows, maybe they’ll be selling Oil to India some day!”, Trump said.
This announcement came within hours of Trump imposing a 25 per cent tariff (plus additional penalties) on Indian imports, citing Washington’s trade deficit with New Delhi and its purchase of Russian oil.
The energy agreement appears to be part of a broader US strategy to reshape trade partnerships, reduce trade deficits, and expand influence, particularly in South Asia, reports New York Post.
The deal highlights the strategic importance the US is placing on Pakistan’s energy potential.
It also signals a possible geopolitical shift, where the US increases its leverage in South Asia and indirectly targets India.
Key point
President Donald Trump announced a trade deal with Pakistan to jointly explore its “massive oil reserves."
Details about the reserves remain unclear and unverified.
Oil Partnership in Development Stage
The US and Pakistan are in the process of selecting an oil company to lead the partnership.
Trump hinted Pakistan may eventually export oil to India.
No official reaction from Pakistan yet
Islamabad has not issued any response to the announcement.
Pakistan has been seeking foreign investment to develop unexplored offshore oil deposits.
Trump imposes 25% tariff on Indian goods
A new 25% tariff on all Indian imports to the US will take effect from August 1.
Additional penalties announced for India’s defense and energy purchases from Russia.
Criticism of India’s Trade and BRICS role
Trump called India’s trade policies “strenuous and obnoxious.”
He described India’s participation in BRICS as “anti-US.”
India responds to tariff announcement
The Indian government said it has “taken note” of Trump’s comments and is assessing the impact.
It reiterated commitment to a “fair and mutually beneficial” trade agreement with the US.
Wider US trade agenda
Trump mentioned ongoing talks with South Korea and other nations on tariff reductions.
A broader report on US trade deals is expected later.
With inputs from agencies
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