What tariff rates Pakistan secured in new US trade deal

ISLAMABAD: Pakistan’s exports to the United States will now face a reduced tariff rate of 19 percent, down from the initially proposed 29 percent under a new trade arrangement announced by the US administration.

This development was confirmed in an official statement by Pakistan’s Finance Ministry on Friday, which described the deal as a balanced and “forward-looking” approach.

The revised tariff rates are expected to support Pakistan’s export competitiveness, particularly in the textile sector, which forms the backbone of the country’s overseas trade. For comparison, other regional exporters will face higher duties: India at 25 percent, and Bangladesh and Sri Lanka at 20 percent each. The agreement places Pakistan in a favourable position in the South and Southeast Asian region.

Despite the positive development, the statement made no mention of any reciprocal tariffs on US goods entering Pakistan.

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According to the Business Recorder, the Finance Ministry’s Director General Media said the Commerce Ministry was leading the technical talks with the US and further details would be shared once the delegation returns to the country.

According to a White House executive order issued on July 31, the US has also reached similar agreements with several other countries. These include the UK (10 percent), Vietnam (20 percent), Indonesia (19 percent), the Philippines (19 percent), Japan (15 percent), the European Union (15 percent), and South Korea (15 percent). However, major regional economies such as India and China have yet to finalise any trade deals with the US.

The Finance Ministry noted that the new tariff structure offers a timely opportunity for Pakistan to expand its footprint in the US market. Exporters have been urged to pursue aggressive marketing and diversification strategies to tap into sectors beyond textiles.

Pakistan exported $6.028 billion worth of goods to the US in 2024–25, up from $5.444 billion the previous year. Imports from the US stood at $2.35 billion, showing a notable rise from $1.875 billion.

The government has also expressed interest in deepening cooperation with the US in areas such as energy, artificial intelligence, cryptocurrency, and mineral development.

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