WASHINGTON:
The United States struck a trade deal with Pakistan, US President Donald Trump said on Wednesday, hours after announcing 25% tariffs on imports from India in addition to unspecified “penalty” over New Delhi’s purchases of Russian weapons and energy.
Trump said that the deal with Pakistan included joint development of the country’s “massive” oil reserves. The announcement came as talks continue with other nations, including South Korea, ahead of his self-imposed August 1 deadline.
“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,” Trump wrote in post on his social media platform of ‘Truth Social’.
“We are in the process of choosing the Oil Company that will lead this Partnership. Who knows, maybe they’ll be selling Oil to India some day!” the US president wrote in his post, without giving additional details of the deal.
Trump said that his administration was “very busy in the White House today working on Trade Deals.” He said: “I have spoken to the Leaders of many Countries, all of whom want to make the United States ‘extremely happy.’ I will be meeting with the South Korean Trade Delegation this afternoon.”
Trump imposed an August 1 deadline for dozens of nations to strike trade deals with the US or face tariffs heightened well above the 10% baseline he had already rolled out. In a separate announcement, Trump said that the August 1 deadline “stands strong, and will not be extended.”
Trump also announced 25% tariffs on imports from India, saying Indian tariffs were “among the highest in the World” and that New Delhi had “the most strenuous and obnoxious non-monetary Trade Barriers of any Country.”
The 25% tariff would be marginally lower than the rate announced in April, but is higher than those of other Asian countries. India was one of the first major economies to engage the Trump administration, but its reluctance to fully open its agricultural and other sectors prevented a deal, so far.
“Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country,” Trump said on Wednesday morning.
He added that India has “always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE.” In addition to the 25% tariff, India will face “a penalty for the above,” Trump said.
Later in the day, he told reporters that talks on the tariffs were ongoing and “we’ll see what happens,” but he did not elaborate on the penalty. in response the Indian government said that it’s studying the implications of Trump’s tariffs announcement.
India and the US have been engaged in negotiations on concluding a “fair, balanced and mutually beneficial” bilateral trade agreement over the last few months, and New Delhi remains committed to that objective, India’s Trade Ministry said in a statement.
The US president has so far reached agreements with the UK, Indonesia, Vietnam, the Philippines, Japan and the European Union, though details on many of the deals remain scant with the White House acknowledging that some require further negotiations.
Trump sounded an optimistic note that a deal will be reached with China, which was given until August 12 to reach an agreement. “We’re doing fine with China. I think it’s going to work out very well. I think we’re going to have a very fair deal with China,” he said.
“Other Countries are making offers for a Tariff reduction. All of this will help reduce our Trade Deficit in a very major way. A full report will be released at the appropriate time. Thank you for your attention to this matter. MAKE AMERICA GREAT AGAIN!” Trump said.
Meanwhile, Trump shocked markets with scaled-back 50% tariff on copper pipes and wiring, dragging down US copper prices more than 17% on the Comex exchange and unwound a premium over the London global benchmark that had grown in recent weeks.
