Trump Backs Pakistan Oil Deal, Targets India with Tariffs

In a groundbreaking development, US President Donald Trump has confirmed the finalisation of a major trade and oil partnership with Pakistan, indicating growing bilateral trust and economic cooperation. Speaking via his social media platform, Trump declared, “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.” He added that the selection of a US oil company to lead this joint venture is underway. The move not only strengthens Pakistan’s energy ambitions but places it strategically in global oil trade. With Trump’s bold remark — “Who knows, maybe they (Pakistan) will be selling Oil to India some day!” — the announcement carries major diplomatic weight in South Asia.

In 2024, total US goods trade with Pakistan reached 7.3 billion dollars, up from 6.9 billion in 2023. The US trade deficit with Pakistan grew by 5.2 percent, reaching 3 billion dollars. Rubio and Dar also discussed critical minerals and mining sectors, potentially opening up new dimensions for investment and resource-sharing.

This economic alignment comes at a time when diplomatic tensions between Pakistan and India remain high. Trump has claimed credit for facilitating a ceasefire between the two countries following escalations in May. While India contests his role, Pakistan has officially appreciated the US efforts to de-escalate.

India’s global standing is now under pressure as the United States hits it with a 25 percent tariff on imports. This move stems from more than just trade grievances. Trump has openly criticised India’s close ties with Russia, both in terms of arms and energy imports, as well as its active role in BRICS, a group he labelled as anti-American. He said, “While India is our friend, they’ve done little business with us because of high tariffs and aggressive non-monetary trade barriers.”

India continues to import 35 percent of its oil from Russia, despite international pressure to cut ties with Moscow. The White House had already warned India about its steep average agricultural tariffs, which hover around 39 percent, and trade barriers on products like apples and corn. Although the Indian government said it remains committed to concluding a fair and balanced trade deal with the US, the new tariff announcement threatens months of negotiations.

White House economic adviser Kevin Hassett explained that Trump’s frustration with India’s slow progress in talks led to the tariff imposition. The move is aimed at compelling New Delhi to offer faster concessions. Meanwhile, other US trade partners such as Vietnam, Indonesia, and the European Union have agreed to lower tariffs ranging between 15 to 20 percent, highlighting India’s isolated position.

This landmark oil deal marks a diplomatic and economic triumph for Pakistan, placing it closer to becoming a key regional player in energy exports. If joint US-Pakistan ventures succeed, Islamabad could not only boost its economy but potentially reframe South Asia’s oil dynamics, especially in contrast to an increasingly cornered India. The statement — “Who knows, maybe they (Pakistan) will be selling Oil to India some day!” — might have sounded like a casual remark, but with the US now backing Pakistan’s energy ambitions, the possibility no longer seems far-fetched.

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