WASHINGTON D.C. / ISLAMABAD – President Donald Trump of the United States announced a big trade deal with Pakistan on Wednesday, July 30, 2025. The deal focused on what he called “massive oil reserves.” It seems like this was a planned way to put pressure on Pakistan. This news came just hours after he said he would put a 25% tax on Indian goods and add more sanctions because of New Delhi’s commercial and defense ties with Russia.
President Trump said on his Truth Social platform, “We have just made a deal with Pakistan. The two countries will work together to develop Pakistan’s huge oil reserves.” He then asked in a way that made people think, “Could Pakistan one day be selling oil to India?” – a statement that many people think was a deliberate attack on India as trade tensions rise.
Pakistan Calls Agreement “Historic”
On Thursday, Pakistan’s Prime Minister Shehbaz Sharif quickly thanked President Trump for the “historic” trade deal. Sharif tweeted on X (previously Twitter), “I want to thank President Trump @realDonaldTrump very much for his leadership in finalizing the historic US-Pakistan trade agreement, which our two sides successfully concluded in Washington last night.” He went on to say, “This historic deal will improve our growing cooperation and open up new areas of our long-lasting partnership in the future.”
It’s not clear what Trump meant by “massive oil reserves.” Pakistan has long claimed to have huge oil deposits, especially along its coast, but progress in exploiting these resources has been slow because of a lack of technical knowledge and money. To meet its energy needs, Pakistan now imports a lot of its oil from the Middle East. As of 2016, it had proved reserves of about 353.5 million barrels, which is a modest amount compared to the rest of the world. Some sources, on the other hand, say that there is a chance for a lot of offshore and shale oil exploration.
Radio Pakistan said that the trade deal was signed at a conference in Washington D.C. that included Pakistan’s Finance Minister Muhammad Aurangzeb, US Secretary of Commerce Howard Lutnick, and US Trade Representative Ambassador Jamieson Greer. The goal of the deal is to increase trade between the two countries, open up new markets, draw in investment, and encourage cooperation in a number of areas. It is said to entail lowering tariffs on goods that both countries send to each other, especially Pakistani goods sent to the U.S. “The report said, “This pact represents the beginning of a new age of economic cooperation, notably in the areas of energy, mining, minerals, IT, cryptocurrencies, and other industries.”
India Is Under Increasing Pressure
Many people see the US-Pakistan pact as a direct pressure strategy to get New Delhi to agree to American demands in ongoing trade talks, as it came right after Trump took a hard line on Indian tariffs. This is in line with the Trump administration’s larger plan to get more “favorable” trade treaties. Recently, they made deals with important allies including Japan, the UK, and the EU.
Just a few hours before the statement about Pakistan, President Trump said that all goods coming into the US from India would have a 25% tax starting on August 1. He also hinted at a “additional unspecified penalty” for India’s ongoing purchases of Russian military equipment and energy. In a post on social media, he called India’s trade policy “most strenuous and obnoxious.”
“Everything is not good! Trump said, “India will have to pay a 25% tariff, plus a fine for the above, starting on August 1.” He also mentioned that India is part of the BRICS group, which stands for Brazil, Russia, India, China, and South Africa. He called this group “anti-US” and said it was another reason for his actions.
Trump said that trade talks with India are still continuing on, even though he used tough language and said taxes will be coming soon. “…We are going to see, we are negotiating with India right now,” he stated again, saying that India’s tariffs are “among the highest in the world.”
India’s Response: Looking into the Effects and Sticking to a Fair Deal
India’s Ministry of Commerce and Industry put out a restrained statement in response to Trump’s comments. It said that it had “taken note” of what the US President said about trade between the two countries and that the government was “studying its implications.”
The statement stressed India’s ongoing commitment to striking a fair deal: “India and the US have been working together for the past few months to reach a fair, balanced, and mutually beneficial bilateral trade agreement.” We are still devoted to that goal.
With Trump’s August 1 deadline for tariffs coming up, the next few days will be very important for US-India economic relations. New Delhi is weighing its options as Washington’s pressure grows.