WEBDESK: U.S. President Donald Trump has confirmed, on Friday, that a delegation of Pakistani officials will visit the United States next week as they look to make a deal on tariffs. The announcement comes after the U.S. imposed a 29% tariff on Pakistani exports due to a reported $3 billion trade surplus.
Speaking to reporters, Donald Trump stated that both Pakistan and India are currently negotiating separate trade agreements with the U.S., aiming to reduce the impact of high tariffs and improve trade relationships. He emphasized that peaceful relations between the two South Asian neighbors are vital for the success of any trade deals.
Pakistan’s formal negotiations with the United States on reciprocal tariffs started earlier in the day with a phone call between Finance Minister Muhammad Aurangzeb and US Trade Representative Jamieson Greer, a press release from the finance ministry said.
Donald Trump said he would have no interest in making a deal with Pakistan or India, if they were to engage in war with each other.
“I would have no interest in making a deal with either Pakistan or India if they were to engage in war with each other,” said Donald Trump, referring to recent military tensions between the two countries.
Alongside Pakistan, India is also involved in trade negotiations with Washington. Indian Trade Minister Piyush Goyal was recently in the U.S., and a deal with India is expected to be finalized by early July. India is currently facing a 26% tariff on its exports to the U.S.
For Pakistan, the new 29% tariff could lead to a loss of up to $1.4 billion in export revenue annually, warned the Pakistan Institute of Development Economics. This puts pressure on the Pakistani government to not only secure better trade terms with the U.S. but also to explore other global markets for its goods.
Trade experts say the upcoming talks could help ease the pressure on Pakistan’s economy if the two sides manage to reach a fair agreement. Many believe that Donald Trump’s tough stance on trade is aimed at reducing trade deficits and pushing countries to accept new terms that favor American interests.
Commerce Minister Jam Kamal revealed that Pakistan is preparing to offer investment concessions to American firms, particularly in the mining sector. These incentives will include lease grants and joint ventures with local companies, especially in the mineral-rich province of Balochistan.
What deal could Pakistan offer to Donald Trump?
“There is untapped potential for U.S. companies in Pakistan, from mining machinery to hydrocarbon ventures,” Kamal told Reuters.
Additionally, Pakistan is looking to increase imports from the United States, particularly in cotton and edible oils, to help ease domestic shortages.In a significant shift from previous U.S. administrations, which largely focused on India, the Trump administration now appears to be recognizing Pakistan as a viable trade partner.
“The previous US administration focused more on India, but Pakistan is now being recognised as a serious trade partner,” Kamal said.
He also stated that Pakistan will gradually lower tariffs in the upcoming federal budget to foster foreign investment and enhance competitiveness. The U.S. has yet to specify priority sectors or trade barriers, but Islamabad is hopeful about reaching a mutually beneficial agreement.
