A day after announcing a trade deal in Pakistan, the United States President Donald Trump on Thursday (July 31) imposed a whopping 19 per cent tariff on the country.
Trump issued an executive order to increase and modify tariffs on its trading partners, in line with his ‘Liberation Day’ tariffs that he had announced on April 2 this year. Trump’s announcement came after a number of countries signed a last-minute trade deal with the US, including Korea and Pakistan. However, in the updated tariff list, Pakistan drops from 29 per cent to 19 per cent. Trump announced on Tuesday via Truth Social that the United States has reached a preliminary deal with Pakistan to jointly develop what he called the country’s “massive oil reserves.” Meanwhile, Trump also announced a trade deal with South Korea, under which its goods are subjected to a 15 per cent tariff, while US exports are exempt from duties.
Trump’s energy partnership with Pakistan
Trump on Wednesday (July 30) announced a fresh agreement with Pakistan, with Washington pledging to support the development of “massive oil reserves”. While the US President did not reveal the key details, Trump termed the agreement as the beginning of a significant energy partnership. “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,” he wrote. He also hinted at the potential for expanded energy trade in South Asia, suggesting Pakistan could one day supply oil to India. The agreement, according to Trump, is still in its initial phase, with a leading oil company yet to be chosen to spearhead the project. “We are in the process of choosing the Oil Company that will lead this Partnership,” he stated, offering no further details on which firms are being considered or what the terms of the deal entail.
Pakistan’s Prime Minister Shehbaz Sharif thanked Trump for the “historic” trade agreement and called it a “landmark deal.” According to state-run Radio Pakistan, the breakthrough was reached during a meeting of Finance Minister Muhammad Aurangzeb with US Secretary of Commerce Howard Lutnick and US Trade Representative Ambassador Jamieson Greer in Washington, DC. Pakistan has long claimed to have large oil deposits along its coast, but no progress has been made to tap those deposits. The country currently imports oil from the Middle East to meet its energy demands.
Boasting about his trade war, Trump had earlier said that tariffs are making America ‘rich again.’ He continued his rant and said that high duties and unfair trade practices were used against the United States for decades. He also slammed US politicians as ‘dumb, pathetic, and crooked’ who did not think about America’s future. He further added that America is on the path of progress after his tariff onslaught. “Tariffs are making America GREAT & RICH Again. They were successfully used against the USA for decades and, coupled with really dumb, pathetic, and crooked politicians, we’re having a devastating impact on the future, and even the survival, of our country. Now the tide has completely turned, and America has successfully countered this onslaught of Tariffs used against it,” he wrote on Truth Social.