President Donald Trump imposed a 29% reciprocal tariff on Pakistan’s exports to the USA. The sweeping reciprocal tariff has been imposed on 180 countries, triggering a major economic shake-up globally.
“For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike,” Trump said while speaking in the White House Rose Garden. He defended the decision in the name of protecting American interests and creating balance in trade for America.
He has long advocated for reshaping international trade agreements, claiming that high tariffs imposed by other countries have unfairly subsidized their economies at the expense of the US. The imposition of tariffs has caused a strong reaction from the world’s economies.
Whereas, according to the US government websites, reciprocal tariffs are calculated as the tariff rate necessary to balance the bilateral trade deficit with each of its trading partners.
“This calculation assumes that persistent trade deficits are due to a combination of tariff and non-tariff factors that prevent trade from balancing. Tariffs work through direct reductions of imports,” the website stated.
In the context of Pakistan, experts warn that with these tariffs, Pakistan might lose its competitiveness in the market.
Trump explained that Pakistan has been charging the US a 58% tariff on American goods, which prompted the US to impose a 29% tariff on Pakistani products.
Read more: US expands student visa screening with mandatory social media investigations
The US remains one of Pakistan’s largest trading partners, with bilateral trade valued at $7.3 billion in 2024. US exports to Pakistan grew by 4.4% to $2.1 billion, while imports from Pakistan increased by 4.9%, totalling $5.1 billion.
Trump marked that the US has been supporting and subsidising the foreign economies for a long time, its time now that economies should become self-reliant.
U.S. has put a reciprocal tariff on countries that charge a higher tariff on American goods. While Pakistan has been charged 29%, India has been charged 26%, and China has been imposed with a 34% tariff. Saudi Arabia and the UAE are charged 10% tariffs.