US President Donald Trump has announced a new trade agreement with Pakistan focused on the development of the country’s untapped oil reserves. In a post on his Truth Social account, President Trump said that Pakistan and the United States will work together to develop the South Asian nation’s “massive oil reserves.”
He said the selection process is underway to choose the American oil company that will lead the partnership. “Who knows, maybe they’ll be selling oil to India someday!” Trump added, in a pointed remark referencing regional trade dynamics.
This announcement came just hours after Trump issued a strongly worded statement against India’s trade practices. While referring to India as “a friend,” he criticised its high tariffs and non-monetary trade barriers, calling them “among the highest in the world” and “strenuous and obnoxious.”
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He further slammed India for buying most of its military equipment and energy from Russia, calling it “not good” amid global calls for Russia to stop the war in Ukraine. As a result, Trump announced a 25% tariff plus additional penalties on Indian goods starting August 1, 2025.
“India will therefore be paying a tariff of 25%, plus a penalty for the above, starting on August 1st,” Trump wrote. “Thank you for your attention to this matter. MAGA!”
The back-to-back posts highlight a shift in Trump’s trade focus in South Asia — signalling closer energy cooperation with Pakistan while adopting a tougher economic stance on India.
