Pakistan has opted for diplomacy instead of retaliation in response to the United States’ new 29% tariffs, which were announced on Thursday. Unlike other nations preparing for a trade war, Islamabad intends to negotiate.
Pakistan authorities plan to meet the U.S. trade representative to contest the duties, arguing Washington already levies higher trade-weighted tariffs than Pakistan.
Finance Minister Muhammad Aurangzeb chaired a high-level meeting to develop a strategy. Attendees, including Pakistan’s WTO representative, approved an immediate initiative to strengthen the embassy’s presence in Washington. Officials confirmed that the ambassador and trade minister will engage in discussions this week following President Donald Trump’s tariff measures, which affected 60 countries, including Pakistan.
Trade Dynamics and Tariff Impact
Trump’s Wednesday move—10% on all imports, plus steeper rates like 29% on Pakistan—aims to boost U.S. goods and cut deficits. Pakistan, 33rd on the deficit list, exports $3.9 billion to the U.S. (up 15% this year) against $933 million in imports, yielding a $3 billion surplus. Yet, U.S. tariffs average 9.9% on Pakistani goods, outpacing Pakistan’s 7.3% on U.S. imports.
Read: Trump Sets 29% Tariff on Pakistani Goods
Garments, a key export, now face up to 49% duties. Pakistan imports soybeans, cotton, and meat at low rates, but steel tariffs top 20% to shield local firms. Officials see a textile export chance as rivals like China face even higher U.S. duties, though Vietnam and India loom as threats.
Trump’s tariffs slashed oil prices by 7% and spiked U.S. 10-year treasury yields to 4%, stoking recession fears. China vowed retaliation, the EU mulled countermeasures, and global stocks tanked. Pakistan, with $32 billion in annual exports, mostly textiles, relies on this revenue alongside remittances. A narrow export base limits gains from schemes like the EU’s GSP+.
