Islamabad: Pakistan Prime Minister Shehbaz Sharif has agreed to send a high-level delegation to the United States, which will offer lower tariffs and increased market share, amid concerns that new tariffs could significantly reduce Islamabad’s exports to Washington.
As per government sources, the delegation would propose a reduction in tariffs on at least 55 products, along with an increased market share and also address the US’ non-tariff concerns related to the ban on social media platform ‘X’.
“These lowered tariffs would be largely in line with the tariffs availed by China under the bilateral Free Trade Agreement (FTA),” it said.
Sharif’s decision comes after US President Donald Trump’s enhanced tariff announcement led to some Pakistani exporters receiving halt requests from their buyers in Washington.
Stating that the US-Pakistan trade relations span decades, Sharif said: “The government is keen to further strengthen the trade partnership with the US.”
Economic think-tanks have estimated a loss of at least $564 million after the US announced a 29 per cent tariff on Pakistani goods.
According to a policy think tank Tabadlab, “The 29 per cent increase in tariffs on Pakistani goods will cause about $564 million loss in exports to the US during first year 2025-26. In an unlikely worst-case scenario, the losses may jump to $2.2 billion.”
The trade war between the US and China escalated further after Beijing retaliated and imposed an additional 34 per cent tariff on US goods in response to US’ 104 per cent duties imposed on Chinese goods.
The US has also imposed additional 29 per cent tariffs on Pakistani goods to reverse the $3 billion trade deficit.
The US has maintained that it has serious reservations and concerns, which include non-tariff barriers to trade and online restrictions, including a ban on social media platform ‘X’.
Sharif has been briefed about and presented with an alternative course of action by the Steering Committee and Working Group to handle the expected tough situation developing due to additional tariffs by the US.
Sharif’s delegation, which would comprise prominent businessmen and exporters, will formulate a strategy to negotiate with Washington and offer a mutually beneficial course of action for the future, the sources added.
“The government plans to offer lower tariffs on around 55 product lines with special benefits to be proposed on cotton, petroleum products and soybeans.
“The tariffs on cotton imports are already nil and the government plans to assure the US authorities of additional imports of the commodity,” said the government sources.
“Pakistan’s plan includes seeking a reversal to the pre-April-4th position or bringing down the additional tariffs to the levels of its competitors like Egypt and Turkey,” the sources added.
(IANS)
