WASHINGTON – In a significant development for bilateral trade, U.S. President Donald Trump has announced that Pakistan will face a reduced tariff rate of 19% on its exports to the United States, down from the previously proposed 29%.
This revised rate, implemented under a sweeping executive order signed on Thursday, is notably lower than the new tariffs imposed on many other countries.
The executive order introduces tariffs of up to 41% on goods imported from several nations, citing long-standing trade imbalances and insufficient reciprocity in trade relationships with the U.S. “Conditions reflected in large and persistent annual U.S. goods trade deficits constitute an unusual and extraordinary threat to the national security and economy of the United States,” the order stated.
Pakistan’s adjusted tariff of 19% is comparatively favorable. Neighboring economies such as India, Bangladesh, Vietnam, and Sri Lanka all face higher tariffs, ranging from 20% to 25%. This shift comes on the heels of a new agreement between Islamabad and Washington aimed at developing Pakistan’s vast oil reserves.
President Trump highlighted the deal on social media, stating, “We have just concluded a deal with the country of Pakistan, whereby Pakistan and the United States will work together on developing their massive oil reserves. Who knows, maybe they’ll be selling oil to India someday!”
Pakistan’s Finance Minister Muhammad Aurangzeb, who led the negotiation team, confirmed that the tariff relief is part of a broader strategic and economic partnership. “From our perspective, this goes beyond immediate trade concerns. Trade and investment must complement one another,” he remarked.
Initially, Pakistan faced a potential 29% tariff as part of a global revision of U.S. trade policy. However, the two countries agreed to a 90-day suspension of the measures, which allowed time for diplomacy. In 2024, Pakistan recorded a $3 billion trade surplus with the U.S., driven largely by textile exports—its biggest export sector to the American market.