'Maybe they’ll sell to India someday': Trump courts Pakistan, announces massive oil deal

US President Donald Trump on Thursday announced a new energy cooperation deal with Pakistan, wherein the two countries will work together to develop Islamabad’s oil reserves.

In a post on Truth Social, Trump said the United States had "just concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will work together on developing their massive Oil Reserves."

He said that discussions were underway to select the American oil company that would lead the partnership, adding that "maybe they’ll be selling Oil to India some day."

On Wednesday, Trump said India was being penalised for maintaining “the most strenuous and obnoxious non-monetary Trade Barriers of any Country” and for its continued imports of Russian oil and military equipment.

“Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high... Also, they have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China,” Trump wrote.

The decision to single out India, despite China being the top buyer of Russian oil, is seen as a move to pressure New Delhi into accepting more favourable trade terms.

India responded by saying it was studying the implications of the new tariffs but reaffirmed its commitment to concluding a “fair, balanced and mutually beneficial” trade agreement with the US.

“India and the US have been engaged in negotiations... over the last few months. We remain committed to that objective,” the commerce ministry said.

The sixth round of trade talks between the two nations is scheduled for August 25 in New Delhi, following the fifth round held recently in Washington. India’s Special Secretary Rajesh Agrawal and US Assistant Trade Representative Brendan Lynch are leading the respective delegations.

India had enjoyed a trade surplus of USD 35.32 billion in goods with the US in 2023-24, which grew to USD 41 billion in 2024-25. In the latest fiscal year, bilateral trade between the two countries touched USD 186 billion, with India exporting USD 86.5 billion in goods and importing USD 45.3 billion.

India is also running a surplus in services trade, exporting an estimated USD 28.7 billion and importing USD 25.5 billion in 2024-25.

Trump’s administration has already imposed a baseline 10 % tariff on imports, along with higher duties including a 50% levy on steel and aluminium and 25 per cent on automobiles.

A 26% tariff on Indian goods, announced on April 2, had been suspended twice but is now set to take effect from August 1.