August 1, 2025 | 09:11 am
TEMPO.CO, Jakarta - United States President Donald Trump has announced a trading agreement with Pakistan that includes the development of their significant oil reserves.
In a post on the social media platform Truth Social on Thursday, July 31, Trump wrote that the U.S. and Pakistan will collaborate on an oil exploration project and are currently selecting an oil company to lead the partnership.
As reported by The Indian Eye, Trump stated, "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!"
25 Percent Import Tariff Imposed on India
The agreement with Pakistan was announced just a few hours after Trump revealed new tariffs on India, which will take effect from August 1st. According to him, this step was taken due to America's trade deficit with India and New Delhi's policy of continuing to buy oil and defense equipment from Russia.
Trump mentioned that despite India being a friend, the trade relationship between the two countries has not developed rapidly due to high tariffs and various non-monetary barriers, which he believes are among the worst in the world.
"They are also one of the largest buyers of Russian energy and military equipment. India will therefore be paying a tariff of 25%, plus penalties, starting August 1," he wrote.
Concerns from India
This action has prompted reactions from several Indian politicians. Opposition Member of Parliament from the Congress Party, Shashi Tharoor, described the imposition of the new tariff as a very serious development. As cited in The New Indian Express, Tharoor said, "It’s a very serious matter for us."
He stated that the 25 percent tariff, plus sanctions for purchasing oil and gas from Russia, could effectively raise the tariff to between 35 and 45 percent.
"There’s even talk of a 100% penalty, that would destroy our trade with America," he said.
Tharoor declared that trade negotiations are ongoing, and he hopes that the tariff can be reduced. "If they aren’t, it will damage our exports, America is a very big market for us," he said.
He also reminded that India's average tariff on U.S. products is only 17 percent. "American products are also not competitively priced for the Indian market," he added.
Trump's Tariff Negotiations
In the same post on Truth Social, Trump added that his administration is busy discussing various trade agreements.
"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'," he wrote.
Trump mentioned that he will be meeting with a trade delegation from South Korea that is currently subject to a 25 percent tariff. "They have an offer to buy down those Tariffs. I will be interested in hearing what that offer is," he stated.
He added that other countries are also beginning to make similar offers. "All of this will help reduce our Trade Deficit in a very major way. A full report will be released at the appropriate time," Trump wrote.
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