US President Donald Trump on Wednesday revealed that the United States has signed a trade deal with Pakistan, just hours after announcing new tariffs on Indian imports and penalties for New Delhi’s defense and energy ties with Russia.
Trump said the agreement with Pakistan involves cooperation on the development of the country’s large oil reserves. The announcement was made through a post on his social media platform, Truth Social, as he continues negotiations with other countries ahead of his self-imposed deadline of August 1.
“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,” Trump wrote. He added that the process of selecting the American oil company to lead the partnership was underway. “Who knows, maybe they’ll be selling oil to India someday!” he added, without offering further details.
Trump has set August 1 as the deadline for dozens of nations to reach trade agreements with the US or face tariffs significantly higher than the existing 10 percent base rate. He confirmed that this deadline will not be extended.
As part of this effort, Trump announced a 25 percent tariff on Indian imports, criticizing India’s trade policies as overly restrictive. He described Indian tariffs as “among the highest in the world” and accused the country of imposing “the most strenuous and obnoxious non-monetary trade barriers of any country.”
Though slightly lower than the rate announced in April, the 25 percent tariff is still higher than those applied to other Asian nations. India was one of the earliest countries to begin trade discussions with the Trump administration, but its hesitation to fully open sensitive sectors like agriculture has so far prevented a final deal.
“While India is our friend, we have done relatively little business with them over the years because their tariffs are far too high,” Trump said. He also criticized India’s strong defense and energy ties with Russia. “India has always bought the vast majority of its military equipment from Russia and is one of Russia’s largest energy buyers, along with China, even as the world calls for Russia to stop the killing in Ukraine.” Trump stated that in addition to the 25 percent tariff, India would face an unspecified penalty due to its Russian ties.
Trump expressed optimism about a trade deal with China, which has until August 12 to finalize an agreement. “We’re doing fine with China. I think it’s going to work out very well. I believe we will have a very fair deal with China,” he said.
He added that other countries have started offering tariff reductions, which he believes will significantly help reduce the US trade deficit. A comprehensive report on all trade developments, he said, would be released in due time. “Make America Great Again!” he concluded.
Meanwhile, Trump surprised financial markets by scaling back a planned 50 percent tariff on copper pipes and wiring. This decision caused US copper prices to drop over 17 percent on the Comex exchange and closed the price gap with the London global benchmark, which had widened in recent weeks.
