Trump Unveils US-Pakistan Oil Deal, Hints at India Sales Amid Tariffs and BRICS Tensions

Trump Unveils US-Pakistan Oil Deal, Hints at India Sales Amid Tariffs and BRICS Tensions

Washington, D.C. July 31, 2025 — In a dramatic shift in South Asian energy diplomacy, U.S. President Donald Trump announced a new energy partnership with Pakistan to jointly develop the country’s “massive” oil reserves. The announcement, made via a post on Truth Social, comes just hours after the Trump administration imposed a 25% tariff and additional penalties on Indian imports, citing trade imbalances and India’s continued energy purchases from Russia.

Key Highlights

• US-Pakistan Oil Pact: The United States and Pakistan will collaborate to explore and develop Pakistan’s untapped oil reserves. Trump stated that an American oil company will soon be selected to lead the venture.
• India Sales Possibility: In a surprising remark, Trump hinted that Pakistan might sell oil to India in the future, despite the two nations having suspended formal trade ties since 2019 due to terrorism-related tensions.
• Tariffs on India: The U.S. imposed steep tariffs on Indian goods starting August 1, citing India’s high trade barriers and its growing energy and defense ties with Russia.
• BRICS Criticism: Trump criticized India’s membership in BRICS, calling it “a group of countries that are anti-United States” and accusing it of undermining the dollar.

🇮🇳 India’s Response and Trade Talks

India’s Ministry of Commerce and Industry responded cautiously, stating that it is studying the implications of the new tariffs and remains committed to a fair and balanced trade agreement with the U.S.. Trade negotiations are ongoing, with a sixth round of talks scheduled for late August.

Despite the tensions, Trump acknowledged India’s willingness to substantially reduce tariffs, though he offered no guarantees of a deal. “We’ll see what they do,” he said, suggesting clarity may come by the end of the week.

Geopolitical Undercurrents

Trump’s remarks reflect a broader strategic recalibration:

• Energy Diplomacy: The U.S.-Pakistan oil deal may be aimed at countering China’s influence in the region, especially through the China-Pakistan Economic Corridor (CPEC).
• Dollar Defense: Trump’s criticism of BRICS aligns with his administration’s stance on defending the U.S. dollar against perceived threats from emerging economies.
• India-Russia Ties: India now sources nearly a third of its oil from Russia, a sharp increase since 2022, which has drawn U.S. scrutiny.

What’s Next?

While the U.S.-Pakistan oil deal remains vague in terms of investment figures and timelines, it signals Washington’s intent to deepen its economic footprint in South Asia. For India, the challenge lies in balancing strategic autonomy with trade pragmatism amid rising global polarization.

As Trump put it, “It’s partly BRICS and partly trade.” The coming weeks will reveal whether diplomacy can bridge the growing divide.