Saturday, March 29, 2025
Washington D.C./New Delhi, August 1, 2025 – In a move that underscores the “America First” economic doctrine, U.S. President Donald Trump has imposed a 19% tariff on Pakistani imports, even as he touted a “major energy partnership” with the South Asian nation earlier this week. The tariff is part of a broader executive order signed Thursday that targets dozens of countries with import duties ranging from 10% to 41%. These new tariffs will take effect on August 7.
Originally, Pakistan was set to face a 29% import tariff. However, following an eleventh-hour trade agreement with the United States, the rate was slashed to 19%. This now puts Pakistan on par with regional countries like Thailand, Cambodia, Indonesia, and the Philippines, which also fall under the same tariff bracket.
The reduction is being viewed as a diplomatic balancing act — rewarding Pakistan for energy cooperation, while still signaling America’s intent to narrow its trade deficit.
Earlier this week, Trump revealed details of a preliminary agreement with Pakistan focused on jointly developing the country’s “vast oil reserves.” Posting on Truth Social, Trump described it as a “significant beginning” that could reshape Pakistan’s energy dependency.
Under this plan, Pakistan is expected to begin importing crude oil from the U.S., reducing its heavy reliance on Middle Eastern suppliers. In a major step, Pakistan’s largest oil refinery, Synergeco, is set to import 1 million barrels of American crude oil in October via global trading firm Vitol.
Interestingly, the deal also explores the possibility of exporting oil to India, though no concrete details have been released on this aspect yet. Trump added that a specific oil company will soon be selected to lead the partnership, signaling further developments in the weeks ahead.
While the tariff might still hurt some Pakistani exporters, the broader U.S.-Pakistan energy engagement suggests Washington is willing to use tariffs and trade as levers for strategic realignment. The move also sends a strong message to countries worldwide — cooperation is welcome, but no one gets a free pass under Trump’s trade regime.
