The government has called for a crucial meeting with stakeholders on Monday, April 7, to assess the potential impact of the United States’ (US) 29 per cent reciprocal tariff on Pakistani exports.
Earlier this week, US President Donald Trump stunned the global trade market by imposing reciprocal tariffs on over 180 countries, including Pakistan, sparking widespread concern.
According to Business Recorder, in a statement issued on Friday, the Ministry of Commerce (Textile Wing) confirmed the meeting would be chaired by the Federal Minister for Commerce, where discussions will focus on the US tariffs and their implications for Pakistani businesses.
In parallel, Prime Minister Shehbaz Sharif has set up a dedicated working group to evaluate the US tariff’s impact on Pakistani exports, examining its effect on each specific tariff line.
The group will also suggest measures to negotiate tariff reductions and explore strategies to mitigate the adverse consequences of higher US tariffs, as outlined in a notification from the Prime Minister’s Office (PMO).
Fawad Anwar, Managing Director of Al Karam Textiles and Chairman of the Pakistan Textile Council (PTC), said the government is actively engaging with exporters to address the new US tariffs.
“Since President Trump’s announcement of a 29 per cent reciprocal tariff, the Finance Minister and exporters, particularly in textiles, have been in constant dialogue,” Anwar shared. “We are working closely to formulate strategies for reducing this tariff.”
The newly formed working group aims to explore avenues to engage the US in discussions aimed at lowering the reciprocal tariff. Anwar explained that the tariff is linked to the US’s trade deficit with Pakistan, which currently stands at $3.7 billion.
“If we can reduce the trade imbalance, there may be an opportunity to lower the reciprocal tariff,” Anwar noted. “The goal is to find ways to narrow this deficit, either by increasing imports from the US or reducing exports to the US.”
The working group will consider various products, such as agricultural imports like soybeans and cotton, that Pakistan can increase purchasing from the US. Additionally, the group will explore ways to reduce duties on US imports to help mitigate the impact of the newly imposed tariff.
“The working group will soon present its findings and propose strategies for negotiation with the US,” Anwar confirmed. “The US has expressed openness to discussions, and we are working diligently to send a delegation to Washington with these proposals.”
The delegation will seek to engage with US counterparts and work towards securing a reduction in the reciprocal tariff. By Monday, the group’s proposals are expected to be ready for review at the upcoming meeting chaired by the Commerce Minister.
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