Trump imposes 19% tariff on Pakistani goods a day after ‘massive reserves’ oil trade deal
PTC Web Desk: Just a day after unveiling what he described as a “landmark energy partnership” with Pakistan, US President Donald Trump has imposed a 19% tariff on Pakistani exports. The move, announced on Friday, is part of his extended “Liberation Day” tariff policy, formalised through an executive order issued Thursday.
The revised tariffs, targeting imports from several nations, will come into effect on August 7 at 12:01 a.m. (Washington time). Although Pakistan had earlier faced a 29% import duty, it has now been reduced to 19% following a last-minute trade negotiation with the US.
Energy deal with Pakistan
On Tuesday, President Trump revealed an initial agreement with Pakistan aimed at developing what he claimed were the country’s “massive oil reserves.” Sharing the announcement on his platform Truth Social, Donald Trump described the deal as “a significant beginning” toward a broader energy partnership between the two countries.
While specifics of the agreement remain unclear—particularly regarding the oil reserves mentioned—Donald Trump said both sides would collaborate to explore untapped reserves. He even suggested that Pakistan could eventually become an oil exporter to neighbouring India.
He further noted that discussions were ongoing to select a lead oil company for the project, though no firm names or timelines were disclosed.
Shift in Pakistan’s oil import strategy
As a major step in the agreement, Pakistan has agreed to begin importing US crude oil, reducing its reliance on Middle Eastern suppliers. According to Usama Qureshi, Vice Chairman of Pakistan’s top oil refiner Cnergyico, the company will import 1 million barrels of West Texas Intermediate (WTI) crude from global trading firm Vitol in October.
Wider tariff overhaul
The US government on Thursday also unveiled a revised list of tariff rates targeting imports from multiple countries. Aimed at narrowing trade imbalances and increasing federal revenue, the new rates vary by country. India faces a 25% levy, Taiwan 20%, and South Africa 30%.
Nations like Thailand, Cambodia, Indonesia, and the Philippines now face tariffs of 19%, the same rate as Pakistan. Goods identified as being rerouted through third countries to dodge these tariffs may be subjected to additional duties.
Countries such as China, Canada, and Mexico are covered under different trade frameworks and are not part of this tariff order.
- With inputs from agencies
