Trump says US and Pakistan have concluded a trade deal
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Shipping containers are seen at a port in Karachi, Pakistan.
PHOTO: REUTERS
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WASHINGTON - The US and Pakistan have struck a deal that will result in lower tariffs for the South Asian nation as well as an agreement in which Washington will help develop Islamabad’s oil reserves, the two sides said.
“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,” US President Donald Trump wrote on social media on July 30.
“We are in the process of choosing the Oil Company that will lead this Partnership.”
Mr Trump’s social media post did not provide further details.
Pakistani Foreign Minister Ishaq Dar also confirmed the deal’s conclusion on social media, without elaborating.
Mr Trump did not mention any agreement on tariffs.
But Pakistan’s finance ministry said on July 31 the trade deal “will result in reduction of reciprocal tariffs especially on Pakistani exports to the United States”, but did not give details of what the tariffs would be.
“This deal marks the beginning of a new era of economic collaboration especially in energy, mines and minerals, IT, cryptocurrency and other sectors,” it said.
Pakistan faced a potential 29 per cent tariff on exports to the United States under tariffs announced by Washington in April on countries around the world.
Tariffs were subsequently suspended for 90 days, so negotiations could take place.
Last week, Mr Dar said the US and Pakistan were “very close” to a trade deal that could come within days, after he met with US Secretary of State Marco Rubio on July 25.
Mr Dar and Mr Rubio had discussed expanding trade and ties in critical minerals and mining, both sides said after that meeting.
Other Pakistani officials have also visited the US in recent weeks for talks.
Under Mr Trump, Washington has attempted to renegotiate trade agreements with many countries that he threatened with tariffs over what he calls unfair trade relations. Many economists dispute Mr Trump's characterisation.
US total goods trade with Pakistan was an estimated US$7.3 billion (S$9.46 billion) in 2024, according to the website of the office of the US trade representative, up from around US$6.9 billion in 2023.
The US goods trade deficit with Pakistan was US$3 billion in 2024, a 5.2 per cent increase over 2023.
Washington has also aimed 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”.
Mr Trump also said Washington was still negotiating with Pakistan’s rival India on trade after announcing earlier in the day the US will impose a 25 per cent tariff on goods imported from India starting on Aug 1.
Pakistan has also recently said it “appreciated the pivotal role” by Mr Trump and Mr Rubio “in de-escalating tensions between Pakistan and India by facilitating a ceasefire”.
Mr Trump has repeatedly taken credit for the India-Pakistan ceasefire
India disputes Mr Trump’s claims that the ceasefire resulted from his intervention and trade threats.
India’s position is that New Delhi and Islamabad must resolve problems directly with no outside involvement.
The latest escalation in the decades-old India-Pakistan rivalry was triggered by a deadly April 22 militant attack
Islamabad denied responsibility.
India struck Pakistan on May 7 and the two nations exchanged hostilities until the ceasefire was declared on May 10. REUTERS
