US President Donald Trump has announced the finalisation of a trade agreement with Pakistan, marking a new chapter in economic cooperation between the two countries.
The deal includes joint efforts to develop Pakistan’s vast oil reserves, which Trump described as “massive”.
The announcement comes as India, still scrambling to finalise a trade deal with Washington, finds itself under growing pressure, staring down hefty 25% tariffs and the risk of penalties over its continued energy ties with Russia.
“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!,” the US president wrote in a Truth Social post.
President Donald Trump said on Wednesday the United States is still negotiating with India on trade after announcing earlier in the day the US will impose a 25% tariff on goods imported from the country starting on Friday.
The 25% tariff, as well as an unspecified penalty announced by Trump in a morning social media post, would strain relations with the world’s most populous democracy.
Later at the White House, the Republican president indicated there was wiggle room.
“They have one of the highest tariffs in the world now, they’re willing to cut it very substantially,” Trump told reporters. “We’re talking to India now – we’ll see what happens … You’ll know by the end of this week.”
The 25% figure would single out India more severely than other major trading partners, and threaten to unravel months of talks between the two countries, undermining a strategic partner of Washington’s and a counterbalance to China.
What the penalty would be was not clear. Trump initially indicated it was for India buying Russian arms and oil, and its non-monetary trade barriers.
This is a developing story and is being updated with more details.
