WASHINGTON – US President Donald Trump has signed an Executive Order modifying the reciprocal tariff rates for certain countries, including Pakistan, to further address the exploding, annual US goods trade deficits.
“This decisive action reflects the President’s continued efforts to protect the United States against foreign threats to the national security and economy of the United States by securing fair, balanced, and reciprocal trade relationships to benefit American workers, farmers, and manufacturers and to strengthen the United States’ defense industrial base,” read a statement issued by the White House.
Pakistan’s recent engagements with the US leadership have yielded results as Washington has imposed 19 percent reciprocal tariff on Islamabad, compared to 25% on India.
Experts have attributed the concession to a recent meeting between Field Marshal Asim Munir and Trump, and Deputy Prime Minister Ishaq Dar calling on US Secretary of State.
The development comes a day after Pakistan and United States moved ahead with deal to jointly develop Pakistan’s massive oil reserves, marking a new chapter in their economic relationship.
US President Donald Trump announced the agreement, revealing that an American oil company will soon be selected to lead the partnership. “We are in the process of choosing the Oil Company that will lead this Partnership,” Trump said, hinting at the potential for the collaboration to expand in exciting ways.
This energy-focused deal not only aims to tap into Pakistan’s vast untapped oil resources but also signals a strategic move that could impact regional energy dynamics.
“Who knows — in the future, Pakistan might even be selling oil to neighboring India”
Trump said as india is currently facing pressure from the US over its energy imports from Russia.
The agreement was finalised after high-level talks between Pakistani Finance Minister Muhammad Aurangzeb and US trade officials, seeks to boost bilateral trade, reduce tariffs, and attract significant US investment into Pakistan’s energy and infrastructure sectors.
Officials from both countries view the deal as a stepping stone toward deeper cooperation in energy, minerals, technology, and emerging markets like cryptocurrency.
As the partnership takes shape, eyes will be on the chosen US oil company to lead this venture, setting the stage for what could become a game-changer in South Asia’s energy landscape.
On April 2, President Trump announced an additional 10% tariff on all countries, and for countries with which the United States has large trade deficits, he announced higher additional tariffs individualized to each country, effective April 9.
