Image Credit: X account @WhiteHouse
US, Pakistan Strike Trade Deal on Oil Reserves
U.S. President Donald Trump announced a new trade deal with Pakistan on July 30, 2025, focused on developing Pakistan’s oil reserves. The agreement includes collaboration with an American firm that will help explore and manage untapped energy assets in Pakistan. Trump also suggested that oil produced under this project could be exported to neighboring countries, including India, in the future.
Possible Tariff Relief for Pakistan
Pakistani officials confirmed that the trade deal may lead to reduced U.S. tariffs on Pakistani goods, though details on rates or timelines have not been disclosed. The announcement comes as a relief for Pakistan, which had been facing the threat of a 29% tariff hike before the agreement was reached.
Context: India Faces New Tariffs
The U.S.–Pakistan agreement comes just days after President Trump imposed a 25% tariff on Indian imports, citing unfair trade practices and India’s continued energy ties with Russia. While Trump stated that discussions with India are ongoing, the Pakistan deal is seen as a contrasting example of fast-tracked economic cooperation.
Expanding U.S. Economic Influence
U.S. officials said the agreement is part of a broader strategy to build direct bilateral partnerships focused on strategic sectors such as energy, mining, digital services, and infrastructure. The goal is to reduce dependency on traditional trade routes and secure energy supply chains in the Indo-Pacific region.
Pakistan’s Response and Future Plans
Pakistan welcomed the deal, with Foreign Minister Ishaq Dar describing it as a step toward deeper trade and investment collaboration with the United States. Additional discussions are expected on cryptocurrency regulation, critical minerals, and digital infrastructure projects, indicating a possible long-term strategic partnership.
