On Wednesday, United States President Donald J. Trump announced a major trade agreement with Pakistan, highlighting joint development of Pakistan’s “massive” oil reserves. The announcement was made through Trump’s social media platform, Truth Social, where he stated that both countries would work together in selecting an American oil company to lead the initiative. Trump hinted at broader regional implications, suggesting that Pakistan might one day sell oil to India.
The deal was part of Trump’s larger trade strategy as he pushes countries to finalize agreements with the U.S. before his self-imposed August 1 deadline. In the same statement, Trump announced a 25% tariff on imports from India, citing what he called the highest tariffs and most strenuous non-monetary trade barriers in the world. He criticized India’s close energy and defense ties with Russia, saying that New Delhi would also face an unspecified penalty for continuing to purchase military equipment and energy from Moscow.
In response to the trade agreement, Prime Minister Shehbaz Sharif thanked President Trump for his leadership in finalizing what he described as a “historic” agreement. Sharing his appreciation on X (formerly Twitter), Sharif stated that the deal would strengthen bilateral cooperation and open new avenues for an enduring partnership between the two nations.
Meanwhile, Trump reaffirmed that the August 1 deadline for new trade deals would not be extended. Countries failing to secure agreements by then would face tariffs higher than the baseline 10% already in place. So far, trade agreements have been reached with the UK, Japan, Vietnam, the Philippines, Indonesia, and the European Union, although several of those deals are still under negotiation. Talks with South Korea continue, while China has been granted a deadline extension until August 12. Trump expressed optimism about a deal with Beijing, saying that it was progressing well and could result in a fair agreement.
Market reactions were mixed following Trump’s announcement of a reduced 50% tariff on copper pipes and wiring. The news triggered a 17% drop in U.S. copper prices on the Comex exchange, narrowing the premium over the London Metal Exchange benchmark. Trump commented that several countries were offering tariff reductions, and a full report on all trade developments would be released at an appropriate time.
