Pakistan, US Push ahead with trade talks amid Tariff challenges

Pakistan and the United States held a high-level virtual meeting on Monday, underscoring their mutual commitment to improving trade and investment relations.

The dialogue was led by Pakistan’s Finance Minister Muhammad Aurangzeb and US Commerce Secretary Howard Lutnick. It focused on resolving trade disputes, especially the reciprocal tariffs imposed during former President Donald Trump’s tenure.

According to a statement issued by the Ministry of Finance on Tuesday, both parties emphasized the importance of “meaningful engagement in trade, investment and deepening economic ties mutually beneficial to both sides,” with further “technical-level detailed discussions” planned based on a “mutually agreed roadmap.”

There was mutual optimism expressed during the meeting, as “both sides expressed confidence in advancing these negotiations for successful conclusion at the earliest.”

Trump-Era Tariffs Still Looming

The ongoing negotiations aim to bring an end to the trade tensions sparked in April 2018. That was when President Donald Trump introduced sweeping tariffs on global imports, targeting several key partners, including Pakistan. The 29% reciprocal tariffs remain a key concern, though their implementation is currently paused until July.

To seek relief, Pakistan has sent a trade delegation to Washington in hopes of bridging the gap and securing favorable terms.

The United States remains Pakistan’s largest export destination, with exports surpassing $5 billion in 2024. In contrast, imports from the US stood at $2.1 billion, highlighting a significant trade surplus in Pakistan’s favor.

In an earlier interview with Bloomberg, Finance Minister Aurangzeb mentioned that Pakistan is “looking to buy more goods from the US and remove non-tariff barriers” as part of its strategy to counteract the high tariffs imposed during the Trump administration.

While no final agreement has been reached yet, both nations have shown a willingness to continue negotiations through constructive dialogue. The upcoming weeks are expected to involve intensive talks at the technical level. These discussions aim to finalize a trade deal that promotes fair access and economic cooperation.