Prime Minister Shehbaz Sharif has greenlit a strategic plan aimed at reducing tensions with the United States over newly imposed tariffs that could heavily impact Pakistani exports. The move comes after a recent hike in US tariffs sparked fears of export losses ranging from $564 million to as high as $2.2 billion. Sharif endorsed talks that include offering the US lower import tariffs and a greater market share in Pakistan, in a bid to secure trade concessions.
Officials close to the matter revealed that Pakistan will look to reduce duties on about 55 product lines—similar to those granted to China under their Free Trade Agreement—while staying within World Trade Organization (WTO) guidelines. These changes would not only benefit the US but also apply to other WTO members. Additionally, Pakistan has crafted responses to US concerns over non-tariff barriers, such as restrictions on profit repatriation and bans on digital platforms like X.
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The urgency was underscored as US buyers sent “halt requests” to some Pakistani exporters, following Washington’s enforcement of steeper tariffs on 60 countries. The move was part of a broader strategy by the US to correct its $3 billion trade deficit with Pakistan, amid escalating trade tensions with China. Beijing, in turn, responded by raising tariffs on US goods by up to 34%, mirroring American hikes.
To address the crisis, a high-level delegation, including senior government officials and prominent business leaders, will soon visit Washington. Their mandate is to negotiate a mutually beneficial solution and potentially roll back the newly implemented tariffs. Meanwhile, a separate working group on cotton has also been formed to discuss expanding US cotton imports—one of the many steps Pakistan is willing to take to preserve its share in the US market.
