Pakistan to Hold Tariff Talks with US Amid Export Loss Concerns
In response to growing concerns over potential export losses, Pakistan Prime Minister Shehbaz Sharif has decided to send a high-level delegation to the United States to initiate tariff negotiations.
Islamabad: In response to growing concerns over potential export losses, Pakistan Prime Minister Shehbaz Sharif has decided to send a high-level delegation to the United States to initiate tariff negotiations. The move aims to secure lower tariffs and increased market access, especially after recent US tariff hikes threaten to significantly impact Pakistani exports.
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Proposal to Reduce Tariffs on 55 Product Lines
According to government sources, the delegation will propose tariff reductions on at least 55 products, including key sectors like cotton, petroleum products, and soybeans. The initiative also seeks to address non-tariff concerns raised by the US, such as Pakistan’s recent ban on the social media platform ‘X’.
“These lowered tariffs would align with those availed by China under their Free Trade Agreement (FTA),” the sources noted.
Impact of US Tariff Hike on Pakistani Exports
The decision follows US President Donald Trump’s announcement of a 29% increase in tariffs on Pakistani goods, which led to some Pakistani exporters receiving cancellation requests from US buyers. Economic experts estimate the tariff hike could result in a loss of at least $564 million in exports for the fiscal year 2025–26.
In a worst-case scenario, these losses could soar to $2.2 billion, according to a report by the think tank Tabadlab.
US-Pakistan Trade Relations Under Strain
Prime Minister Sharif emphasized that US-Pakistan trade relations have spanned decades and expressed his desire to further strengthen the partnership. However, tensions have risen due to the new tariff measures and online restrictions, which the US has described as non-tariff trade barriers.
The US has maintained that its decision to impose additional tariffs aims to address a $3 billion trade deficit and concerns over digital restrictions in Pakistan.
Strategic Plan to Rebuild Trade Confidence
Pakistan’s Steering Committee and Working Group have briefed Sharif on an alternative course of action to navigate this challenging trade environment. The visiting delegation, comprising top businessmen and exporters, will aim to reverse or reduce the additional tariffs to match those of competitors such as Egypt and Turkey.
“The government plans to assure US authorities of increased imports of key goods like cotton, for which tariffs are already nil,” said a government official.
