Trump Imposes 29% Tariff on Pakistan
- Abeera Marium Siddiqui
- April 3, 2025
- 5:13 pm
- 58
- Trending
The United States has imposed a 29% tariff on Pakistan, a move that threatens the country’s exports and escalates global trade tensions under President Donald Trump’s new policy.
Pakistan’s $6 billion export industry to the United States faces a major challenge. US President Donald Trump has announced a 29% tariff on Pakistani goods, shaking up trade between the two nations.
This sudden move is part of a broader policy targeting over 180 countries with higher tariffs. The decision significantly raises costs for Pakistani exporters, especially in the textile sector, which dominates Pakistan’s trade with the US.
Previously, Pakistan enjoyed lower tariffs under the Generalized System of Preferences (GSP). Now, this increase threatens the country’s competitiveness in the American market. However, some of Pakistan’s rivals face even higher tariffs. Vietnam (46%), Cambodia (49%), Bangladesh (37%), and Myanmar (44%) are in a worse position. Meanwhile, India’s tariff is slightly lower at 26%, giving it an advantage.
Why Did Trump Impose These Tariffs?
Trump defended his decision by stating that Pakistan charges a 58% tariff on American products.
“Pakistan has been charging us a 58% tariff on our goods. Hence, we are imposing a 29% tariff on their products.”
He argues that this move will correct unfair trade policies. Other nations also face higher tariffs, including Vietnam (46%), Indonesia (32%), and China (34%). Even the European Union, South Korea, and Japan have not been spared as the US escalates its global trade war.
How Will This Affect Pakistan’s Exports?
Pakistan’s textile industry will take the hardest hit. In 2023, Pakistan’s top exports to the US included:
- Miscellaneous textiles: $3.87 billion
- Knitwear and crochet clothing: $785.8 million
- Leather goods and accessories: $591.8 million
- Cotton-related products: $1.03 billion
With the 29% tariff, these products may struggle to compete. American buyers might look for cheaper alternatives, but some of Pakistan’s competitors—like Bangladesh and Vietnam—are also facing high tariffs. This could allow Pakistan to hold on to some market share despite the challenges.
A Ripple Effect on the Global Economy
The tariff announcement has sent shockwaves through global markets.
- The US import tax rate has surged to 22%, the highest since 1910.
- Japan’s Nikkei Index dropped to an eight-month low.
- The US stock market lost nearly $5 trillion in value since February.
China, now facing a 34% tariff, has demanded an immediate reversal and warned of countermeasures. European leaders also expressed concern, fearing that the trade war could hurt economies worldwide.
Despite these warnings, Trump remains committed to his “America First” policy.
Trump Closes Trade Loopholes
Along with the tariffs, Trump signed an executive order closing a trade loophole that allowed duty-free shipments from China for packages under $800. This aims to limit cheap imports and reduce illicit trade in pharmaceuticals and semiconductors.
The new base tariffs will take effect on April 5, while reciprocal tariffs start on April 9.
As global markets react, Pakistan must now rethink its trade policies and find new ways to sustain its exports.
