EXPLAINER
Why did US President Donald Trump snub India by declaring an oil deal with Pakistan? Why did he ignore the fact that US-India bilateral trade is 18 times greater than US-Pakistan trade? Has he indulged in a bizarre rhetoric to tell India that it must toe its line, otherwise...
Why did US President Donald Trump snub India by declaring an oil deal with Pakistan? Why did he ignore the fact that US-India bilateral trade is 18 times greater than US-Pakistan trade? Has he indulged in a bizarre rhetoric to tell India that it must toe its line, otherwise Washington may ally with its enemy? Donald Trump took this decision after the top officials of India and the US had already held many rounds of talks for a Bilateral Trdae Agreement, or at least a tariff deal before that.
According to the Office of the US Trade Representative, total US bilateral trade with Pakistan was an estimated $7.3 billion in fiscal year 2024-25. While Washington's exports to Pakistan in 2024 stood at $2.1 billion, up 4.4 percent ($90.9 million) from 2023, its imports from Pakistan totaled $5.1 billion in 2024, up 4.9 percent ($238.7 million) from 2023. The U.S. suffered a trade deficit of $3 billion with Pakistan in 2024, a 5.2 percent increase ($147.9 million) over 2023.
On the other hand, the total bilateral trade between India and the US reached in Fiscal Year 2024-25 stood at $131.84 billion. With this, the US emerged as India's largest trading partner for the fourth consecutive year. India's exports to the US were $86.51 billion, while imports were $45.33 billion, resulting in a trade surplus for India.
Donald Trump Thursday shocked the world by announcing a deal to develop Pakistan's oil reserves. Taking to the social media platform Tryh Social, he announced, "We have just concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will work together on developing their massive Oil Reserves...We are in the process of choosing the Oil Company that will lead this Partnership." To add insult to the injury, he taunted India by saying, "Who knows, maybe they'll be selling oil to India some day!"
Donald Trump's announcement is full of contradictions, as Pakistan has neither proven oil reserves nor the refining capacity, while India has a proven crude reserve of about 4.8 billion barrels. One barrel equals 159 litres. While India produced over 600,000 barrels per day in February 2025, Pakistan produced only 68,000. Similarly, India imported nearly five million BPD in 2024, while Pakistan imported about 140,000 BPD.