U.S. President Donald Trump has imposed sweeping tariffs on global imports, targeting dozens of countries, including Pakistan, in a move that also affects Washington’s closest allies.
Trump’s decision to impose a 29% tariff on Pakistani imports signals a major shift in U.S.-Pakistan trade relations. The broader strategy, announced Wednesday, includes a 10% baseline tariff on all U.S. imports, effective April 5, alongside steep duties on key trading partners like China.
Read more: Canada retaliates against Trump with $155 billion tariffs.
Pakistan strongly criticized the tariff, warning of serious economic repercussions. The new duty follows Islamabad’s earlier 58% tariff on U.S. goods, a retaliatory measure against previous trade barriers. Pakistani officials are expected to announce countermeasures, further straining economic ties between the two nations.
The South Asian economy, already facing challenges, now faces additional pressure as the tariff could disrupt major exports like textiles and increase consumer costs on imported goods. Analysts warn that these duties may deepen Pakistan’s economic crisis and strain its trade relations with the U.S. and other global markets.
Impact on Pakistan’s Economy and Global Trade
Pakistan’s textile industry, a key pillar of its economy, is expected to suffer the most under the new tariffs. The higher costs could make Pakistani goods less competitive in the U.S. market, widening the country’s trade deficit and complicating economic recovery.
Economists caution that escalating trade tensions could drive inflation, slow global growth, and increase costs for consumers worldwide. Pakistan, already struggling with economic instability, may experience sharper repercussions than other nations.
Global Market Shockwaves
Trump’s tariff hike has sent shockwaves through global markets, with the U.S. import tax rate soaring to 22% from just 2.5% in 2024. Experts predict these aggressive trade policies could push the global economy toward recession.
China, the world’s second-largest economy, now faces a 34% tariff in addition to its previous 20% duties. Beijing has condemned the move and vowed retaliation. Meanwhile, the European Union and Japan also face significant hikes, with EU imports taxed at 20% and Japan at 24%.
These tariffs could lead to higher consumer prices, economic slowdowns, and job losses in affected industries. While some American sectors may benefit, economists warn that overall growth could suffer, especially as manufacturing jobs remain largely automated and costly to revive in the U.S.
