The United States has reduced tariffs on goods imports from Pakistan to 19% from the earlier rate of 29%. The United States has imposed new import tariffs on 69 countries, effective immediately, following the expiration of several trade agreement deadlines. President Donald Trump signed an executive order authorizing the sweeping tariff changes as part of his administration’s ongoing trade realignment.
Pakistan–U.S. Tariff Deal Opens Doors for Export Growth
In a parallel announcement, Pakistan’s Finance Ministry confirmed the successful conclusion of tariff negotiations with the United States, resulting in a revised 19% tariff on Pakistani exports to the U.S.
According to the ministry’s statement, the updated rate reflects a “balanced and forward-looking” decision by U.S. authorities that keeps Pakistan competitive compared to other South and Southeast Asian exporters. The deal is seen as a boost for Pakistan’s export-heavy sectors, especially textiles, which form the backbone of its export economy.
The ministry emphasized that close coordination with stakeholders, including the Ministry of Commerce and Pakistan’s diplomatic mission in Washington, D.C., played a vital role in securing the agreement. Exporters are now urged to adopt an aggressive marketing strategy to maximize this opportunity.
In addition to textiles, the government sees potential for growth in emerging sectors such as IT, energy, cryptocurrency, minerals, and artificial intelligence, and has committed to supporting exporters with policy reforms, market intelligence, and promotional initiatives.
The PML-N-led federal government expressed optimism about deepening future cooperation with the Trump administration, stating that the agreement marks a major milestone in bilateral economic relations.
Under the revised structure:
- Bangladesh faces a 20% tariff
- Türkiye has been levied 15%
- India was hit a day earlier with a 25% tariff
- Canada saw its rate increase from 25% to 35%
- Brazil faces the highest tariff at 50%, followed by Switzerland at 39%
Pakistan, however, secured a last-minute trade agreement that reduced its proposed tariff from 29% to 19%, positioning it more favorably than several regional peers. A final decision on China’s tariff status is still pending, as negotiations remain ongoing.
Senior U.S. officials clarified that tensions with India are not merely trade-related but also geopolitical, citing concerns over India’s role in the BRICS alliance and its deepening ties with Russia. They noted such complexities cannot be resolved overnight.
U.S., Pakistan Announce Major Trade Agreement
A statement from the U.S. Embassy in Islamabad confirmed the signing of a significant trade agreement, underscoring a shared commitment to mutual prosperity and stronger economic ties. The deal is viewed as a cornerstone achievement in U.S.–Pakistan relations under President Trump’s leadership.
Both sides hailed the agreement as a step toward sustainable economic growth, and Pakistan reaffirmed its intent to maintain close engagement with Washington to further develop trade, investment, and strategic cooperation.
