Pakistan Will Not Retaliate to US Tariffs on Pakistan, Seeks Diplomatic Solution
- Abeera Marium Siddiqui
- April 14, 2025
- 2:00 pm
- 49
- Business
US tariffs on Pakistan will not be met with countermeasures. Finance Minister Muhammad Aurangzeb told the BBC that Pakistan does not plan to retaliate against the tariffs introduced during Donald Trump’s presidency.
He said global trade is going through a tough time. The best way forward, he believes, is through talks. “We all need to think about how to move forward in this new world order,” he said. Pakistan prefers to talk rather than fight over trade matters.
No Retaliation, Despite Concerns
The finance minister spoke about worries over US tariffs on Pakistan. Many are concerned about how these duties will affect exports. But the government will not respond with new tariffs. “If your question is whether we are going to give any response [to the US] in return, the answer is no,” he said.
Earlier this month, former US President Donald Trump announced new tariffs. These affect several countries, including Pakistan. The plan includes a 29% tariff on exports, especially textiles. This rate is on hold for 90 days. But a minimum 10% duty still applies.
“There is a minimum tariff of 10% and then there is an additional tariff,” Aurangzeb said. “I think we need to talk about this issue.”
Economic Ties with Both the US and China
Aurangzeb also talked about Pakistan’s position between the US and China. He called the US a long-time strategic partner. He said the partnership goes beyond trade. But he also said Pakistan values its strong relationship with China. Both ties matter and cannot be ignored.
When asked about being caught between the US and China, he replied that both are important. Pakistan needs to handle its diplomacy wisely to protect its economy.
Tariffs Could Hit Key Industries
Experts warn that US tariffs on Pakistan could hurt the textile sector the most. If the 29% tariff returns after 90 days, the effects will be serious. The Pakistan Institute of Development Economics (PIDE) said total duties could reach 37.6%. That includes the current 8.6% Most Favored Nation (MFN) tariff. If that happens, exports could drop by 20–25%. The loss could be between $1.1 billion and $1.4 billion per year.
Textiles are Pakistan’s top export. The Pakistan Textile Council said the industry brings in $17 billion. It is also the biggest job provider. A fall in exports could cause big job losses and damage the economy.
Strategic Opportunity in Crisis
Even though there are risks, analysts see a chance for change. PIDE called the tariff issue an opportunity for strategy and reform.
In the short term, Pakistan should start strong diplomatic talks. The aim is to explain how harmful these tariffs can be for both countries. In the long run, Pakistan needs to spread out its exports. New markets should be explored.
Regions like the European Union, China, ASEAN, Africa, and the Middle East offer new trade chances. Areas such as IT, halal food, processed items, and sports goods could grow.
Meanwhile, Prime Minister Shehbaz Sharif said a top-level team will visit Washington. Their goal is to find a solution through talks. The aim is to protect Pakistan’s trade without causing more problems.
