WASHINGTON, July 31 — In a whirlwind day of trade announcements, US President Donald Trump declared a new strategic oil development deal with Pakistan while simultaneously imposing a 25% tariff on Indian imports, escalating pressure on nations ahead of his self-imposed August 1 deadline for trade agreements.
“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,” Trump said in a post on his social media platform Truth Social.
The oil deal marks a significant move for Pakistan, which has long claimed to hold untapped hydrocarbon reserves along its coast but has lacked foreign investment to exploit them. Trump added that a US oil company would soon be selected to lead the initiative, noting, perhaps provocatively:
“Who knows, maybe they’ll be selling Oil to India some day!”
Pakistan Seals Deal Before Deadline
The announcement came as Pakistani Finance Minister Mohammad Aurangzeb and other officials were in Washington, finalizing negotiations to avoid steep tariffs under Trump’s new trade regime. Pakistani officials have remained tight-lipped about specifics but hope for tariff rates comparable to those recently agreed with Vietnam, Japan, and Indonesia — around 15–20%.
“We hope to conclude a mutually beneficial trade agreement… hopefully in days, not in weeks,” said Foreign Minister Ishaq Dar, speaking recently at the Atlantic Council.
🇮🇳 India Hit With Tariffs and Penalty for Russian Ties
In stark contrast to Pakistan’s diplomatic success, India was slapped with 25% tariffs on all imports to the United States, alongside an additional penalty for continuing to buy Russian oil and military equipment.
“India has the most strenuous and obnoxious non-monetary Trade Barriers of any Country,” Trump wrote, criticizing India’s high tariffs, closed markets, and its deepening ties with Russia, especially amid the war in Ukraine.
The penalties, effective August 1, follow India’s failure to finalize a trade deal after months of talks. India’s Trade Ministry responded that it is “studying the implications” of the decision but remains committed to a “fair, balanced, and mutually beneficial” agreement.
The announcement triggered a 0.4% drop in the Indian rupee in non-deliverable forwards and weighed on Indian market sentiment, with Gift Nifty futures falling 0.6%.
Sanctions on Six Indian Companies Over Iran Trade
Compounding the pressure, the US State Department separately announced sanctions on six Indian companies for their involvement in the Iranian petrochemical trade, including:
- Kanchan Polymers ($1.3M),
- Alchemical Solutions ($84M),
- Ramniklal ($22M),
- Jupiter Dye Chem ($49M),
- Global Industrial ($51M),
- Persistent Petrochem Pvt Ltd ($14M).
The move forms part of the US strategy to enforce secondary sanctions via tariffs and penalties, rather than traditional financial sanctions.
Global Trade Maneuvering and China Deadline
Trump confirmed that trade talks are underway with South Korea, and he expressed optimism about upcoming deals, including with China, which was given a later deadline of August 12.
“We’re doing fine with China. I think we’re going to have a very fair deal,” he said.
So far, the Trump administration has claimed partial deals with the UK, EU, Japan, Vietnam, Indonesia, and the Philippines, though many details remain undisclosed.
Shock Tariff on Copper Pipes Hits Markets
In a surprise move, Trump also reduced tariffs on copper pipes and wiring to 50%, down from earlier levels. The decision caused a sharp 17% drop in US copper prices on the Comex exchange and erased a premium over global copper prices set in London.
Strategic Summary
- Pakistan secures a strategic energy partnership and escapes punitive tariffs.
- India faces economic penalties and trade isolation unless it recalibrates relations with Russia and the US.
- Trump’s broader “America First” trade blitz is reshaping economic alliances ahead of a pivotal deadline.
“Other Countries are making offers for a Tariff reduction. All of this will help reduce our Trade Deficit in a very major way,” Trump declared. “MAKE AMERICA GREAT AGAIN!”
