In a significant move that has stirred global trade and diplomatic discussions, US President Donald Trump on Wednesday announced a joint oil development deal with Pakistan. The announcement came just hours after Trump imposed a 25% tariff with additional penalties on Indian imports starting August 1, citing the US trade deficit with New Delhi and India’s purchase of Russian oil.

US-Pakistan Oil Partnership

In a post on his Truth Social account, Trump revealed that the United States and Pakistan have agreed to collaborate on developing Pakistan’s “massive” oil reserves. The two countries are currently in the process of selecting the oil company that will lead the partnership.

“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. We are in the process of choosing the Oil Company that will lead this Partnership. Who knows, maybe they’ll be selling Oil to India some day!” Trump wrote.

This announcement signals a potential strategic energy shift in South Asia, especially considering Pakistan’s strained ties with India.

Tariffs and Trade Talks

The remarks follow Trump’s declaration of 25% tariffs and additional penalties on Indian imports, effective from August 1. Trump cited Washington’s trade imbalance with India and New Delhi’s continued oil purchases from Russia as key reasons for the tariffs.

Trump also shared that he had been engaged in trade discussions with leaders of various nations, many of whom are seeking to improve trade relations with the US.

“We are very busy in the White House today working on Trade Deals. I have spoken to the Leaders of many Countries, all of whom want to make the United States extremely happy,” Trump said.

South Korea Trade Negotiations

In the same post, Trump mentioned an ongoing trade negotiation with South Korea. He noted that South Korea currently faces a 25% tariff but has submitted an offer to lower those tariffs through increased purchases and investments.

“South Korea is right now at a 25% Tariff, but they have an offer to buy down those Tariffs. I will be interested in hearing what that offer is,” Trump stated.

Reducing the US Trade Deficit

Trump emphasized that many countries are making offers for tariff reductions, which he believes will significantly lower the US trade deficit. He promised that a full report on these developments will be released at an appropriate time.

“Likewise, other Countries are making offers for a Tariff reduction. All of this will help reduce our Trade Deficit in a very major way. MAKE AMERICA GREAT AGAIN!” he added.