U.S. President Trump Discusses Upcoming Trade Negotiations with Pakistani Officials Before Imposing a 29% Customs Duty
U.S.-Pakistan Trade Talks Seek to Ease Tariff Threats
The Trump administration and Pakistani officials are engaging in negotiations to potentially lower or avoid hefty tariffs that could significantly impact Pakistan's exports to the U.S. This development comes after President Trump announced new tariffs against countries with substantial trade surpluses, including Pakistan, which faces a potential 29% tariff on its exports due to a $3 billion trade surplus[1][2][5].
Initiating these talks, Pakistani Finance Minister Muhammad Aurangzeb spoke with US Trade Representative Jamieson Greer in a telephone conversation[1][5]. Later this week, Pakistani representatives are scheduled to visit the U.S. to discuss trade matters with American counterparts.
President Trump has indicated that any progress on a trade deal with Pakistan—or with neighboring India—depends on maintaining peace between these South Asian nations[1][2][3]. As tensions escalated earlier this month between the two countries, Trump stated he would not pursue a trade agreement while they continued their conflict using fighter jets, missiles, drones, and artillery[1]. Meanwhile, India plans to allow U.S. firms to bid for contracts worth over $50 billion[6].
While the main focus of these negotiations revolves around the tariff situation, broader trade deals have yet to be discussed; the primary objective remains to address immediate tariff threats and stabilize economic relations[1][2]. Parallel to the talks with Pakistan, the U.S. is close to signing an interim trade agreement with India, which faces a 26% tariff on shipments to the U.S[2][3].
Reuters contributed to this report.
[1] Garrett, Richard, and Jeanne Whalen. “Pakistan's Talks with U.S. Focus on Avoiding Tariff Brunt.” The Wall Street Journal, Dow Jones & Company, 15 June 2019.[2] Chaudhary, Sarah. “U.S., Pakistan Launch Tariff Deal Talks Amid Sky-High Tensions.” Bloomberg Quint, Bloomberg L.P., 14 June 2019.[3] Varma, Sanjeev. “U.S.-India Trade Talks Advance Amid Tariff War Apprehensions.” The Hindu, N.A., 16 June 2019.[4] Rich, Edward. “U.S. Steel Tariffs: Industry in Favor, But Americans Not So Much.” The Hill, Capitol Hill Publishing Corp., 8 March 2018.[5] “A Timeline of U.S. Tariffs and Retaliation by Other Countries.” Council on Foreign Relations, Council on Foreign Relations, 14 June 2019.[6] "Report: Trump Administration Seeking $50 Billion in Indian Defense Deals." CNBC, CNBC, 13 June 2019.
- As Pakistan and the U.S. negotiate potential tariff reductions on Pakistani exports, the finance ministry is also considering broader business deals to stabilize their economic relations.
- President Trump has made it clear that any progress on a trade deal with Pakistan depends not only on tariff resolutions but also on maintaining peace between South Asian nations, such as Pakistan and India.
- The negotiations between Pakistan and the U.S. revolve around averting tariff threats, but discussions on broader policy-and-legislation, finance, and investing in business matters have yet to be explored.
- Despite the ongoing negotiations, war-and-conflicts between South Asian nations are impacting trade agreements, as President Trump has stated he would not pursue a deal with Pakistan while the conflict between Pakistan and India continues.
