U.S. Imposes 29% Tariff on Pakistan: Country Faces $1 Billion Loss, Document Reveals

Islamabad: A document has emerged outlining the potential impact of the 29% tariff imposed by the United States on Pakistan, predicting significant losses for the country’s trade. According to the Ministry of Commerce’s document, Pakistan stands to lose approximately $1 billion due to the tariff, and despite this, the U.S. is still expected to face a trade deficit of $2 billion.
The document highlights that the trade volume between Pakistan and the U.S. in the last fiscal year was $7.3 billion, with Pakistan exporting $2.1 billion worth of goods to the U.S. There was a 4.4% increase in U.S. exports to Pakistan compared to the 2023 fiscal year. In 2024, Pakistan exported $5.1 billion worth of goods to the U.S., marking a 4.9% increase compared to the previous year. However, the U.S. trade deficit with Pakistan rose to $3 billion, a 5.2% increase compared to 2023.
Textiles and apparel accounted for the largest share of Pakistan’s exports to the U.S., with these items making up 55% of total exports. The IT sector also saw a significant boost, with exports to the U.S. exceeding $1 billion.
The document warns that the 29% tariff will likely lead to a sharp rise in the price of Pakistan’s textile exports in the U.S., potentially reducing demand. The new tariff may also exacerbate Pakistan’s trade deficit further. Moreover, challenges in finding alternative markets for products like rice and textiles are anticipated, with a possible 10-15% reduction in exports.
To mitigate the effects of these tariffs, immediate trade negotiations with the U.S. are considered essential.