A Significant Shift in US Trade Policy
In a bold move, the United States has implemented a 19% import duty on Pakistan imports, following an executive order that rolled out sweeping reciprocal tariffs on several countries. This step comes as part of President Trump’s broader Liberation Day tariffs initiative, aimed at addressing trade imbalances and protecting U.S. economic interests.
Originally, Pakistan had been slated for a much steeper 29% tariff, but following last-minute trade negotiations—particularly an energy partnership deal—the rate was reduced to 19%.
Pakistan Imports
The imposition of this new duty directly impacts Pakistan imports, especially in sectors where the U.S. is a major consumer—like textiles and apparel.
Given that textiles account for over 90% of Pakistan’s exports to the U.S., any changes in tariff rates could significantly sway trade flows . Abrupt increases in tariffs can erode competitiveness, but the 19% rate offers more breathing room than the previously proposed 29%.
How Did This Come About?
On August 1, Trump finalized a “triage” of reciprocal tariffs across 69 countries, ranging from 10% to as high as 41% . Pakistan ultimately received a relatively favorable rate—19%—due in part to strategic negotiations between U.S. and Pakistani officials, including a last-minute deal around energy cooperation and oil reserves development
Economic Repercussions for Pakistan
Textile Exports
As the backbone of Pakistan’s exports to the U.S., the textile industry stands at the forefront of this development. While the reduced tariff provides some relief, exporters must accelerate market strategies to stay competitive.
Trade Balance and Opportunities
Prior to the tariff change, Pakistan enjoyed a $3 billion trade surplus with the U.S., mostly fueled by textile demand . The new rate could help retain that balance if Pakistani manufacturers quickly adjust their pricing and logistical operations.
Diplomatic and Strategic Ties
The tariff reduction signals an evolving economic partnership, highlighted by the energy trade deal. Islamabad is optimistic that this framework will open doors for further investment, particularly in emerging sectors like artificial intelligence, mining, and renewable energy .
Regional Comparisons and Global Outlook
Among South and Southeast Asian nations, Pakistan’s 19% rate compares favorably:
- India: 25%
- Bangladesh: 20%
- Vietnam: 20%
- Indonesia: 19%
This relatively lower rate may position Pakistan imports as more attractive and cost-efficient than regional alternatives, particularly in textile-heavy supply chains.Read more about Pakistan’s Exports to Afghanistan.
What Lies Ahead for Pakistan Imports?
- Export Diversification Strategies
To mitigate tariff impact, Pakistani exporters should explore niche markets and higher-value segments within textile and apparel. - Digital and Trade Promotion Push
The government’s support in policy advisory, trade intelligence, and market outreach will be essential to capitalize on U.S. market access. - Monitoring U.S. Trade Policy Dynamics
Since these tariffs are politically timed, Pakistan must stay alert for shifts in U.S. administration policy, especially after the 2025 election cycle. - Strengthening Bilateral Engagement
Sustained diplomatic and economic engagement with Washington will be key to securing favorable conditions in the medium to long term.
Final Thoughts
The introduction of a 19% duty on Pakistan imports by the U.S. marks both a challenge and an opportunity. While exporters face increased competition, the rate is more manageable than initially proposed. Pakistan’s rapid response and strategic positioning—especially in textiles—will determine whether this becomes a hurdle or a stepping stone to broader market access and investment.Pakistani Imports as Trump Expands Trade Crackdown
