Washington, D.C.: On Friday, August 1, 2025, US President Donald Trump put a 19% tariff on Pakistani exports. This came just a day after he announced what he dubbed a “landmark energy partnership” with Pakistan. This is part of Trump’s “Liberation Day” tariffs, which he first announced on Thursday through an executive order. The new tariffs, which will affect dozens of countries, will go into force in seven days, at exactly 12:01 AM Washington time on August 7.
The new 19% levy is a big deal, but it’s a big drop from the 29% US price that Pakistan had to pay before. The lower rate comes after Pakistan and Washington apparently made a last-minute trade arrangement, which made it possible for this change to be made to the final list of tariffs revealed on Thursday.
Taking apart the US-Pakistan Energy and Trade Deal
On Tuesday, July 29, President Trump talked about a preliminary accord with Pakistan that was mostly about working together to produce what he called the country’s “massive oil reserves.” Trump called the arrangement “a significant beginning” to what he saw as a long-term energy collaboration between the US and Pakistan. He shared the news on his Truth Social platform.
But it’s not clear right away what “massive oil reserves” Trump was talking about in Pakistan. Pakistan has some known conventional oil reserves, although they are thought to be small (around 353 million barrels as of 2016). There is also the possibility of unconventional shale resources, but no major commercially viable discoveries have been made yet. Previous attempts to explore offshore have likewise not led to significant findings. Even yet, Trump said that the two countries would work together to find untapped sources and even suggested that Pakistan might one day sell oil to India.
Without mentioning any specific companies or giving any deadlines for the project, Trump said, “We are in the process of choosing the oil company that will lead this partnership.”
As part of this energy contract, Pakistan has agreed to buy US crude oil. This is a big change from its long-standing reliance on Middle Eastern energy supplies. Usama Qureshi, Vice Chairman of Cnergyico, told Reuters on Friday that the company will buy 1 million barrels of American West Texas Intermediate (WTI) crude from global commodity trader Vitol in October. Cnergyico is Pakistan’s largest refiner.
Trump’s bigger plan for tariffs is coming to light.
On Thursday, the White House made public the revised reciprocal tariff rates that apply to imports from several different trading partners. This all-encompassing action is meant to reduce trade deficits and bring in more money for the United States.
The executive order sets a minimum tariff rate of 10% for imports from most nations that don’t have a higher particular rate mentioned. There have been a lot of last-minute negotiations and announcements about these additional tariffs.
Some of the most important tariffs that have been put on other trading partners are:
Trump said on social media earlier this week that India would charge 25% on Indian goods.
Taiwan: 20% on things made in Taiwan.
30% on things from South Africa.
Thailand and Cambodia: Both nations, which allegedly made last-minute arrangements after the US threatened them over their border conflict, had to pay a 19% levy, which is the same as what Indonesia and the Philippines charge their neighbors.
Vietnam: There will be a 20% tax on Vietnamese goods.
The administration has also said that commodities that are found to be transshipped to avoid higher rates will be subject to extra taxes. It’s crucial to remember that several big economies, including China, Canada, and Mexico, are on distinct trade paths and are covered by different orders or ongoing talks. This shows how complicated and often changing the Trump administration’s global trade strategy is.