Trump slashes tariffs on Pakistan to 19% after ‘massive reserves’ oil trade deal

US President Donald Trump has imposed a 19% tariff on Pakistani goods following the announcement of a new energy partnership between the two countries. This tariff is a reduction from the previous 29% duty Pakistan faced under earlier US trade rules. The updated tariffs, part of the executive "Liberation Day" tariff order, will take effect on August 7 at 12:01 am Washington time.

The energy deal, announced by Trump on Tuesday, involves joint development of oil reserves in Pakistan. Trump described it as “a significant beginning” to a long-term partnership. Pakistan Prime Minister Shehbaz Sharif confirmed the agreement was finalized in Washington and referred to it as a “landmark deal.” He added, “This landmark deal will enhance our growing cooperation so as to expand the frontiers of our enduring partnership in days to come.”

As part of the agreement, Pakistan has agreed to begin importing crude oil from the United States. Usama Qureshi, Vice Chairman of Cnergyico, confirmed that the company will import 1 million barrels of West Texas Intermediate (WTI) crude through Vitol in October. Trump also stated that both countries are in the process of selecting the oil company that will lead the partnership.

Alongside changes to Pakistan’s tariff, the US has revised rates for several other countries. India will now face a 25% tariff, which Trump said is due to India’s high tariffs and non-monetary trade barriers. Additional tariffs announced include 20% on Taiwanese and Vietnamese goods, 30% on South African goods, and 19% on products from Thailand, Cambodia, Indonesia, and the Philippines. Goods transshipped to avoid higher duties will be subject to further levies.

Trump also referenced India’s membership in the BRICS alliance and stated that the US would not allow any attacks on the dollar. “They have BRICS, which is basically a group of countries that are anti the United States and India is a member of that, if you can believe it,” Trump said. In response, India’s Commerce Minister Piyush Goyal said India would take all necessary steps to safeguard national interests and noted that the implications of the new tariffs are under review.