In a dramatic shift in trade policy, Trump Strikes Major Oil Deal with Pakistan, Hints at Future Sales to India Amid Tariff Tensions. US President Donald Trump has announced a “massive” oil partnership with Pakistan, just hours after declaring 25% tariffs and additional penalties on Indian imports. The move is widely seen as a direct response to India’s energy and defense ties with Russia, signaling a significant reshuffling in America’s South Asia strategy.
Trump Strikes Major Oil Deal with Pakistan, Hints at Future Sales to India Amid Tariff Tensions
“Maybe They’ll Sell to India Someday”: Trump Floats Future Scenario
Taking to Truth Social, Trump revealed that the United States and Pakistan have finalized a deal to jointly develop the South Asian country’s untapped oil reserves.
While the post lacked specific operational details, the former president struck a provocative tone:
“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. Who knows, maybe they’ll be selling Oil to India some day!”
Trump’s message seemed intentionally timed to draw contrast with his escalating rhetoric against India.
Tariff Tensions: Trump Slaps India With Trade Penalties
Only hours before the announcement of the Trump Pakistan oil deal, the US president declared a 25% tariff on all goods imported from India, citing Washington’s growing trade deficit and India’s continued purchase of Russian military equipment and energy.
Trump described India’s trade practices as “strenuous and obnoxious”, criticizing its BRICS alignment and accusing the country of undermining global efforts to isolate Russia over the war in Ukraine.
“India will therefore be paying a tariff of 25 per cent, plus a penalty for the above, starting on August 1,” Trump stated.
US-Pakistan Oil Partnership: A Strategic Energy Gamble?
While Pakistan’s known oil reserves remain underdeveloped and largely unexplored, reports suggest the country may hold significant offshore deposits.
However, limited infrastructure, funds, and technical expertise have prevented the country from tapping into these resources.
With this new US-Pakistan energy partnership, Washington is expected to bring in a leading oil company to spearhead exploration and development.
Trump noted that the two nations are in the process of selecting the company that will lead the venture.
The move has raised eyebrows in India, especially given the timing and Trump’s speculative statement about future oil exports to New Delhi.
Shehbaz Sharif Reacts: “Landmark Deal”
Pakistan Prime Minister Shehbaz Sharif welcomed the trade deal with open arms, calling it a “historic and landmark” agreement.
In a post on X (formerly Twitter), he extended thanks to Trump for his “leadership role” in finalizing the accord.
“I wish to convey my profound thanks to President Trump for his leadership role in finalization of the historic US-Pakistan trade agreement, successfully concluded by our two sides in Washington, last night.”
Sharif emphasized that the deal would not only boost bilateral cooperation but also “expand the frontiers” of the US-Pakistan partnership in the coming years.
India Responds: Studying Trump’s Remarks
In response to Trump’s surprise announcement, the Indian government said it had “taken note” of the new tariff policy and is studying its implications.
A Ministry of External Affairs spokesperson stated:
“India and the US have been engaged in negotiations on concluding a fair, balanced and mutually beneficial bilateral trade agreement over the last few months. We remain committed to that objective.”
However, analysts say Trump’s language and penalties mark a low point in US-India ties, which have been growing steadily over the past decade particularly in strategic, defense, and technology areas.
India-Russia Energy Ties: A Thorn in Trump’s Side
Trump’s tariff justification centered largely on India’s continuing energy imports from Russia, even amid escalating Western sanctions against Moscow.
India, a major BRICS economy, remains Russia’s largest energy buyer after China.
“They have always bought a vast majority of their military equipment from Russia… All things not good!” Trump wrote.
He went further in another post, declaring:
“I don’t care what India does with Russia. They can take their dead economies down together, for all I care.”
This aggressive rhetoric marks a sharp divergence from the more measured stance taken by previous US administrations, which had tolerated India’s legacy relationships with Russia for defense procurement.
“We Are Very Busy”: Trump’s Day of Global Trade Talks
Trump’s oil deal with Pakistan was just one piece of a larger White House trade agenda, according to his Truth Social updates.
“We are very busy in the White House today working on Trade Deals,” he wrote. “I have spoken to the Leaders of many Countries, all of whom want to make the United States extremely happy.”
In addition to Pakistan, Trump said he would be meeting with a South Korean trade delegation, noting that South Korea is currently subject to a 25% US tariff, but had made an offer to reduce that rate through negotiation.
South Korea Next in Line: Tariff Reductions on the Table
Trump stated that South Korea had made an offer to “buy down” US tariffs as part of ongoing talks.
He expressed interest in hearing the specifics of that offer and implied that other countries are also offering tariff relief.
“Likewise, other Countries are making offers for a Tariff reduction. All of this will help reduce our Trade Deficit in a very major way.”
Trump concluded the post with a trademark flourish:
“A full report will be released at the appropriate time. Thank you for your attention to this matter. MAKE AMERICA GREAT AGAIN!”
Experts Weigh In: A Tactical Play or a Strategic Shift?
Former US Assistant Secretary of State and Asia Group partner Nisha Biswal commented on the growing divergence between Washington and New Delhi.
“Historically, the United States has demonstrated a fair amount of understanding regarding India’s legacy relationships… I think President Trump is probably less inclined to accommodate and adapt.”
Analysts say the Trump Pakistan oil deal could be a calculated message to New Delhi, pressuring it to reduce energy and defense dependency on Moscow.
Others believe it’s an opportunistic pivot to isolate India within South Asia while offering Pakistan an economic lifeline.
Conclusion: Oil, Tariffs, and Diplomacy in Flux
Trump’s announcement of an oil partnership with Pakistan and simultaneous tariff hike on India reflects a fluid and transactional US foreign policy approach. By leveraging energy deals and trade penalties, Trump is attempting to shift regional alignments and cut trade deficits all while keeping rivals on edge.
Whether Pakistan’s “massive oil reserves” can be successfully developed remains to be seen. But the symbolic impact of Trump’s actions is already being felt in New Delhi, Islamabad, and beyond.
As the August 1 tariff deadline looms, all eyes will be on how India responds and whether this sparks a new chapter of geopolitical recalibration in South Asia.
Also Read: Trump Announces Breakthrough US-China Trade Deal Amid Rare Earth and Tariff Tensions
Also Read: Pak imports 85% of its oil:How can it sell to US; why did Trump strike oil deal with Pak?
