The United States imposed a 10 percent tariff on all Pakistani imports today. The Section 301 trade action targets 60 economies over forced labour concerns. Pakistan falls in the lower-tier rate alongside India, the UK, and the EU, while China faces a steeper 12.5 percent duty.
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The tariff creates a major challenge for Pakistan’s export sector. The United States remains Pakistan’s largest single-country export market. Steel, aluminum, certain energy products, and fertilisers are exempt from the new duties. Pakistan responded swiftly to the development. The government submitted detailed responses to the USTR over recent weeks. Officials have engaged in active bilateral trade negotiations with US counterparts.
Finance Minister Muhammad Aurangzeb will visit Washington soon. He aims to continue high-level discussions on trade relief. The administration also seeks a broader bilateral trade agreement. The action replaces temporary 10 percent global duties that expired at midnight. A February Supreme Court setback prompted the administration to use more durable legal authority. Section 301 of the Trade Act of 1974 permits sanctions against countries with “unjustifiable, unreasonable, or discriminatory” trade practices.
The USTR determined that Pakistan qualified for the lower tier. The country demonstrated partial measures to prevent forced labour goods from entering its market. However, the tariff still represents a significant blow to Pakistan’s economy.
