Trump Leaves 'Good Friend' India In The Cold, Strikes Trade Deal With Arch Rival Pakistan Over 'Massive Oil Reserves'
President Donald Trump announced that the United States has concluded a deal with Pakistan, centered around developing the nation’s “massive oil reserves.”
What Happened: On Wednesday, in a post on Truth Social, Trump said, “We have just concluded a Deal with the Country of Pakistan,” which involves working with the South Asian nation to develop its oil reserves.
“We are in the process of choosing the Oil Company that will lead this Partnership,” he said, while adding, “Who knows, maybe they'll be selling Oil to India some day!” a statement that can be seen as a direct jab at India, Pakistan’s rival and neighbour to the south, which also happens to be America’s tenth largest trading partner.
“Likewise, other Countries are making offers for a Tariff reduction,” he added. “All of this will help reduce our Trade Deficit in a very major way.” Trump ended the message by promising further details “at the appropriate time.”
Why It Matters: Trump told reporters on Tuesday that India could face tariffs of 20% to 25% on exports to the United States as the August 1 deadline approaches without a finalized agreement.
“India has been a good friend, but India has charged basically more tariffs, almost more than any other country,” Trump said. According to U.S. Trade Representative Jamieson Greer, talks with India would require more time to conclude, noting that Trump wanted quality deals over speed.
On Wednesday, in a Truth Social post, Trump said that India would be paying a 25% tariff, “plus a penalty” for buying Russian energy and military equipment, “at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE,” he says.
Trump says that India is still negotiating with the U.S. after the 25% tariff announcement on Wednesday, which is set to be imposed on imports from the country starting from Friday, according to a report by Reuters.
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