Trump reduces tariffs on Pakistan from 29 percent to 19 percent
The reduction comes after oil deal with Pakistan
Deal aims to jointly develops Pakistan's oil reserves
Trump Reduces Pakistan's Tariffs From 29 Percent To 19 Percent
The reduction comes after Trump's deal with Pakistan to jointly develop its oil reserves
Summary
US President Donald Trump on Friday unveiled an array of import levies in which Pakistan’s tariffs have been slashed down to 19 per cent, from the earlier 29 per cent.
The move comes as part of the expansion plan of Trump's sweeping "Liberation Day" tariff, announced via an executive order on Thursday.
Pakistan’s tariffs were lowered after Trump said the US has struck a deal with India's neighbor to jointly develop its oil reserves.
Trump said both countries would cooperate to tap unexplored reserves and floated the idea of Pakistan eventually exporting oil to India.
"We are in the process of choosing the oil company that will lead this partnership," Trump added, without naming any specific firms or timelines.
As part of the deal, Pakistan agreed to import US crude oil, marking a major shift in its long-standing dependence on Middle Eastern energy suppliers.
Pakistan's largest refiner, Cynergico, will import 1 million barrels of oil from American West Texas Intermediate (WTI) crude from global commodity trader Vitol in October, its vice chairman, Usama Qureshi, told Reuters on Friday.
The range of new tariffs are due to take effect in one week on August 7, with separate sector-specific duties -- on copper -- also being implemented on trading partners.
Per Trump's order, the “universal” tariff for goods coming into the US will remain at 10 per cent, the same level that was implemented on April 2. However, that 10 per cent rate will apply only to countries with which the US has a trade surplus
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