Pakistan, US Begin Talks on Tariffs and Trade Deal
Pakistan, US Begin Talks on Tariffs and Trade Deal
Pakistan-US Trade Talks Begin in Washington as Tariff Relief Tops Agenda
Pakistan and the United States have started two days of high-level trade negotiations in Washington, with tariff relief and a possible new bilateral trade agreement expected to dominate discussions. The Pakistani delegation is seeking reduced import duties on its exports while working to strengthen long-term trade and investment ties with the United States.
Tariff Issue Remains Key Focus of Negotiations
The latest talks follow months of discussions over the tariff measures announced by US President Donald Trump on April 2, 2025, under the International Emergency Economic Powers Act (IEEPA). The policy initially placed a 29 per cent tariff on Pakistani exports, creating concerns for exporters and businesses dependent on access to the US market.
A Pakistani delegation that visited Washington in July 2025 held discussions with the Office of the United States Trade Representative (USTR) and managed to bring the proposed tariff down to 19 per cent, according to officials familiar with the negotiations.
The new round of talks is expected to further address tariff concerns and explore ways to improve market access for Pakistani products.
Pakistan Delegation Seeks Broader Trade Agreement
The Pakistani team is being led by Commerce Secretary Jawad Paul and includes Foreign Office spokesperson Tahir Andrabi along with other senior officials. The discussions scheduled for Thursday and Friday will also focus on finalising the framework of a broader bilateral trade agreement between the two countries.
Beyond tariffs, both sides are expected to discuss expanding trade cooperation, increasing investment opportunities, and improving economic engagement.
US Trade Measures and Future Economic Impact
The tariff situation has changed after the US Supreme Court invalidated tariffs imposed under IEEPA. The Trump administration later used Section 122 of the Trade Act to introduce a temporary global tariff of 10 per cent, which is set to expire on July 24 after the 150-day legal period.
Pakistan is also among countries facing Section 301 investigations by the USTR over alleged forced labour and related trade practices. Islamabad has submitted detailed responses to US authorities as part of the review process.
The United States remains Pakistan’s largest single-country export market, while Pakistan is the second-largest importer of US cotton. The outcome of these negotiations could have a significant impact on future trade flows, export growth, and economic cooperation between the two countries
FAQs
1. What is the US tariff agreement with Pakistan?
The US-Pakistan tariff agreement refers to ongoing negotiations aimed at reducing trade barriers and improving market access between the two countries. Pakistan is seeking relief from US import tariffs while both sides work on a broader bilateral trade agreement.
2. Who is Pakistan's 2nd largest trading partner?
China is Pakistan’s second-largest trading partner after the United States in terms of overall trade relations. China is a major source of imports for Pakistan and also an important investment partner.
3. Why are the USA supporting Pakistan?
The United States supports engagement with Pakistan due to shared economic interests, regional security cooperation, counterterrorism efforts, and trade opportunities. Both countries also maintain long-standing diplomatic and economic relations.
4. When did US trade tariffs start?
US trade tariffs have existed for centuries, but modern tariff policies have changed over different administrations. Recent major tariff actions expanded significantly during President Donald Trump’s first term, especially from 2018 onward, with additional measures introduced in 2025.
5. Who pays U.S. tariffs?
US tariffs are paid by companies that import goods into the United States. Importers usually pay the tariff to US customs and may pass some or all of the additional costs to consumers through higher prices.
6. Why did Trump add 100% tariff on China?
The Trump administration announced higher tariffs on Chinese goods as part of efforts to address trade disputes, including concerns over trade imbalances, intellectual property issues, and economic competition with China. The tariff measures were part of broader US-China trade negotiations and policy decisions.
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Article Details
Category: Global
Published: 9 July 2026
Time: 11:21 am
Updated: 9 July 2026 at 1:33 pm
Author: Rabia
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