By Kanishka Singh, Asif Shahzad and Ariba Shahid WASHINGTON/ISLAMABAD (Reuters) -The U.S. and Pakistan have struck a deal that will result in lower tariffs for the South Asian nation as well as an agreement in which Washington will help develop Islamabad's oil reserves,

In a major shake-up of international trade, US President Donald Trump made two big announcements within hours on Wednesday. Major Tariff and Trade Moves in One Day First, he said that the United States will now slap a 25% tariff and extra penalties on Indian goods starting August 1.

Pakistan’s been chasing oil since the 1950s. Trump is now exploring this decades-old oil fantasy to gain leverage in trade talks with India. He knows this kind of hyphenation with Islamabad triggers New Delhi.