In a major blow to India, US President Donald Trump has imposed a 25 percent tariff on the South Asian country, along with other unspecified penalties for purchasing oil from Russia. Taking a jab at New Delhi, he quipped that India might soon be buying oil from Pakistan. Meanwhile, Pakistan has managed to secure a trade deal with the US.

 

According to reports, the trade deal is expected to result in a substantial drop in tariffs on Pakistani imports entering the US. However, neither Pakistan nor the US has released any figures regarding the final tariff value levied on Pakistani imports.

 

Pakistan’s embassy in the US has outlined that the agreement will allow a fall in reciprocal tariffs levied on US imports of Pakistani goods. The trade deal was finalised during a meeting of Pakistan’s Finance Minister Muhammad Aurangzeb and US Secretary of Commerce Howard Lutnick. 

 

Commerce Secretary Jawad Paul, Pakistan’s Ambassador to the US Rizwan Saeed Sheikh and US Trade Representative Ambassador Jamieson Greer also attended the key meeting on the finalisation of the trade deal. According to details, the deal will lead to increased bilateral cooperation in cryptocurrency, energy, IT, and mining sectors.

 

According to the Pakistan embassy, the deal is expected to spur increased US investment in Pakistan’s infrastructure and development projects.

 

Taking to social media, Pakistan’s embassy in the US shared a post on X (formerly Twitter) about the finalisation of a trade deal aimed at “boosting bilateral trade, expanding market access, attracting investment, and fostering cooperation in areas of mutual interest”. It further highlighted the potential uptick in foreign direct investment (FDI) inflows that will likely be directed towards development and infrastructure projects. 

 

The US President also confirmed the finalisation of the trade deal via Truth Social. Apart from confirming the trade deal, he also outlined how “Pakistan and the United States will work together on developing their massive oil reserves,”.

 

While it is unclear which oil reserves Donald Trump was referring to, reports from September 2024 reveal the discovery of sizable petroleum and natural gas reserves in Pakistan’s territorial waters. 

 

Moreover, the US President noted that the process to select the oil company leading the Pak-US partnership is still underway. Taking a jab at India, the post suggested that Pakistan’s massive oil reserves and their development could result in Pakistan “selling oil to India some day!”.