Trump Lowers Tariffs on Pakistan After Energy Deal, Imposes 19% Duty on Goods

Donald Trump has reduced US tariffs on Pakistani goods from 29% to 19% following a new energy partnership centred on oil imports and joint exploration. The revised tariff comes as part of broader trade realignments under Trump's "Liberation Day" order, which imposes varying duties on exports from multiple countries.

US President Donald Trump has imposed a 19% tariff on Pakistani goods just a day after celebrating what he called a “landmark energy partnership” with the South Asian nation. This updated tariff replaces the earlier 29% duty, representing a shift in US-Pakistan trade dynamics following a last-minute agreement focused on oil development.

The decision is part of Trump’s broader “Liberation Day” tariff initiative, announced through an executive order. The revised tariffs, which affect several countries, are set to take effect from August 7. While the White House has not disclosed the exact scope of the Pakistani oil reserves mentioned in Trump’s announcement, the US president hinted at future cooperation to explore untapped resources and even suggested potential oil exports to India.

The preliminary deal also includes Pakistan agreeing to import American crude oil, marking a strategic move away from its traditional reliance on Middle Eastern suppliers. Cnergyico, Pakistan’s largest refiner, confirmed it will bring in one million barrels of West Texas Intermediate (WTI) crude in October from Vitol, a global commodities firm.

While Trump praised the agreement as a “significant beginning,” he did not address the tariff implications in his social media statement. Still, the tariff cut signals an opening for deeper economic engagement, even as new reciprocal duties hit other countries with harsher penalties—such as India at 25%, Vietnam at 20%, and South Africa at 30%.

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As trade relationships continue to evolve under Trump’s policies, the recalibrated rate for Pakistan stands out as both a diplomatic gesture and a strategic economic recalibration.