WASHINGTON — President Donald Trump announced that Pakistani officials will visit Washington next week to negotiate a trade agreement aimed at mitigating a newly imposed 29% tariff on Pakistani exports to the United States. The tariff, introduced as part of the administration’s broader reciprocal trade policy, responds to Pakistan’s $3 billion trade surplus with the U.S. and its average 58% tariff on American goods.
“Pakistan has been charging us a 58% tariff on our goods,” Trump stated, emphasizing the need for equitable trade practices. The administration’s policy seeks to address trade imbalances by imposing reciprocal tariffs on countries with significant surpluses and high duties on U.S. products.
The 29% tariff on Pakistani goods is expected to impact key export sectors, particularly textiles and apparel, which constitute a significant portion of Pakistan’s exports to the U.S. Analysts predict that the increased duties could reduce Pakistan’s exports by $1–2 billion annually, affecting employment and economic stability in export-reliant regions.
In parallel, the U.S. is advancing trade discussions with India. Indian Commerce Minister Piyush Goyal recently visited Washington to expedite negotiations, with both nations aiming to finalize an interim trade agreement by June 25. India currently faces a 26% tariff on its exports to the U.S., and the proposed deal includes opening over $50 billion in federal contracts to American companies. However, India seeks exemptions for sensitive sectors like agriculture and dairy, which employ millions domestically.
President Trump has linked the progress of trade agreements with both Pakistan and India to regional stability. He cautioned that any resurgence of hostilities between the two nations would halt trade negotiations. This stance follows a recent four-day military conflict between Pakistan and India, marking the most intense clashes in decades.
The Trump administration’s reciprocal tariff policy has broader implications, affecting over 100 trading partners. Countries with substantial trade surpluses and high tariffs on U.S. goods, such as China, the European Union, and Vietnam, have also been targeted. The policy aims to rectify perceived trade inequities and bolster domestic industries, though it has raised concerns about potential retaliatory measures and global economic repercussions.
As Pakistani officials prepare for negotiations in Washington, the outcome will be closely monitored by stakeholders in both countries. The talks present an opportunity to address trade imbalances and strengthen bilateral economic relations, contingent upon diplomatic engagement and regional peace.