Washington – July 31, 2025
In a significant diplomatic development, the United States and Pakistan have finalized a landmark trade agreement, US President Donald Trump confirmed on Wednesday. The deal, which includes joint efforts to develop Pakistan’s vast untapped oil reserves, was announced just hours after Trump imposed steep new tariffs on Indian imports and criticized New Delhi’s continued defense ties with Moscow.
“We’ve just concluded a deal with Pakistan to jointly work on developing their massive oil reserves,” Trump revealed in a post on his social media platform, Truth Social. “We are in the process of selecting the oil company that will lead this partnership. Who knows—maybe they’ll end up selling oil to India someday!”
The announcement marked a pivotal moment in Pakistan-US relations, with both sides describing the agreement as a step toward deeper economic cooperation. Pakistani Prime Minister Shehbaz Sharif, taking to X (formerly Twitter), hailed the deal as “historic” and extended his gratitude to President Trump for his “leadership role” in finalizing the agreement.
“This landmark trade deal will expand the growing cooperation between our two countries and open new frontiers in our enduring partnership,” Sharif wrote.
President Trump’s remarks came amid a flurry of trade negotiations as his administration pushes to wrap up multiple bilateral agreements ahead of an August 1 deadline. “We’ve been very busy in the White House today working on trade deals,” Trump told reporters, noting ongoing discussions with several nations including South Korea.
The Trump administration has set a firm deadline of August 1 for countries to strike trade deals with the US—or face stiff new tariffs. “The August 1 deadline stands strong and will not be extended,” Trump reiterated.
Tensions Rise with India
In a separate and more confrontational move, Trump also announced the imposition of 25% tariffs on Indian imports. Calling India’s trade practices “strenuous” and “obnoxious,” the US president accused New Delhi of maintaining some of the world’s highest tariffs and non-monetary trade barriers.
“India is our friend, but we’ve done relatively little business with them because their tariffs are among the highest in the world,” Trump said. “They’ve also continued to buy military equipment and energy from Russia, even as the world demands Russia stop the killing in Ukraine.”
Alongside the tariff hike, Trump also threatened unspecified penalties against India over its ongoing defense and energy ties with Moscow. However, he later told reporters that discussions were still underway, adding, “We’ll see what happens.”
In response, India’s Ministry of Trade said it was carefully reviewing the implications of Washington’s tariff move. A statement from the ministry reaffirmed India’s commitment to a “fair, balanced, and mutually beneficial” trade agreement with the US.
Broader Trade Push
Trump’s aggressive trade agenda continues to ripple across global markets. So far, the US has reached preliminary agreements with several countries including the UK, Japan, Indonesia, Vietnam, the Philippines, and the European Union. However, details of most deals remain limited, and the White House has acknowledged that further negotiations are required.
The president also struck a hopeful tone on talks with Beijing, stating, “We’re doing fine with China. I believe we’ll have a fair deal in place soon.” China has until August 12 to finalize its own trade agreement with the US.
Adding to market volatility, Trump surprised investors by scaling back tariffs on copper pipes and wiring to 50%—a move that sent US copper prices tumbling over 17% on the Comex exchange and erased the premium over global benchmarks.
“Other countries are now offering tariff reductions, and all of this will help bring down our trade deficit in a very major way,” Trump said. “A full report will be released at the appropriate time. Thank you for your attention to this matter. MAKE AMERICA GREAT AGAIN!”
