After announcing tariffs on New Delhi, Trump said he had struck a deal with Pakistan.
US President Donald Trump has announced 25 per cent tariffs on imports from India plus a "penalty", while his administration struck a deal with Pakistan in which Washington will work with Islamabad in developing the South Asian nation's oil reserves.
Here Are Top Points On US Trade Deals With India And Pakistan
- Trump on Wednesday said that imports from India will face 25 per cent tariffs, while also announcing an unspecified "penalty" over New Delhi's purchases of Russian weapons and energy. In a post on his Truth Social platform, Trump said the measures will kick in on August 1, along with a host of other tariff hikes -- some up to 50 per cent.
- Later, calling India a "friend", the billionaire Republican said Washington was still negotiating with New Delhi and the situation would be clearer by the end of the week. "They have one of the highest tariffs in the world now, they're willing to cut it very substantially...We're talking to India now - we'll see what happens ... You'll know by the end of this week," Trump said.
- "While India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country...They have always bought a vast majority of their military equipment from Russia, and are Russia's largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE - ALL THINGS NOT GOOD," Trump wrote in a Truth Social post.
- The 25 per cent figure would single out India more severely than other major trading partners, and threatens to unravel months of talks between the two countries, undermining a strategic partner of Washington's and a counterbalance to China. The White House had previously warned India about its high average applied tariffs -- nearly 39 per cent on agricultural products -- with rates climbing to 45 per cent on vegetable oils and around 50 per cent on apples and corn.
- In response, New Delhi said it was studying the implications of Trump's announcements and remained dedicated to securing a fair trade deal with Washington. "India and the US have been engaged in negotiations on concluding a fair, balanced and mutually beneficial bilateral trade agreement over the last few months. We remain committed to that objective," it said.
- Russia continued to be India's top oil supplier during the first six months of 2025, making up 35 per cent of overall supplies. The United States, the world's largest economy, currently has a $45.7-billion trade deficit with India, the fifth largest.
- Shortly after announcing the tariffs on New Delhi, Trump said he had struck a deal with India's neighbour, Pakistan, to jointly develop its oil reserves. "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," Trump wrote on social media.
- Washington's total goods trade with Islamabad was estimated to be $7.3 billion in 2024, according to the Office of the US Trade Representative, up from around $6.9 billion in 2023. The US goods trade deficit with Pakistan was $3 billion in 2024, a 5.2 per cent increase over 2023.
- The businessman turned politician did not provide further details on the said deal, but took a jab at New Delhi, saying, "Who knows, maybe they'll be selling oil to India some day!" Washington has been trying to build stronger ties with Asian powers in recent years to counter its rival China's influence in the region. Pakistan is designated by Washington as a "major non-NATO ally."
- By trying to leverage US economic power to squeeze trading partners with tariffs and force foreign companies to move to the United States, Trump has upended the global economy. He has already announced deal outlines with five countries -- Britain, Vietnam, Japan, Indonesia and the Philippines -- as well as the one with the 27-nation EU.
Advertisement
Advertisement
Advertisement
Featured Video Of The Day
"Maybe They'll Sell To India": Trump Announces "Massive" Oil Partnership With Pak
