ISLAMABAD/WASHINGTON: The United States has launched its new global trade tariff regime, and Pakistan has emerged as one of the key beneficiaries, receiving the lowest tariff rate in South Asia, a move widely seen as a diplomatic success for Islamabad.
According to a statement released by the White House, the new trade policy — led by President Donald Trump — imposes varying tariff rates on different countries. As per US media, Pakistan has been given a 19% tariff, down from the previous 29%, while India faces a 25% rate, signaling a significant comparative advantage for Pakistan.
Observers attribute this diplomatic win to recent high-level engagements, including a meeting between COAS General Asim Munir and President Trump, a phone call between PM Shehbaz and US Secretary of State Marco Rubio, and key meetings involving Deputy Prime Minister Ishaq Dar and Finance Minister Muhammad Aurangzeb in Washington.
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A statement from Pakistan’s Finance Ministry hailed the decision as the start of “a new era of economic collaboration” in sectors like energy, minerals, IT, cryptocurrency, and digital services.
In a symbolic gesture of goodwill, Pakistan had also rolled back a 5% tax on foreign digital services just a month after introducing it — a move seen as helping pave the way for the revised US tariff decision.
The new tariff regime affects a number of countries:
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19% on Pakistan, Indonesia, Malaysia, Thailand, and the Philippines
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25% on India, Kazakhstan, and Moldova
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30% on South Africa, Algeria, and Libya
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40% on Myanmar and Laos
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41% — the highest — on Syria
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35% on Canada (raised from 25%)
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15% on Israel
The decision is expected to significantly benefit Pakistan’s textile industry, which contributes nearly 60% of the country’s total exports. The US remains Pakistan’s largest textile market, and the reduced tariff provides a competitive edge over regional rivals like India, Bangladesh, and Vietnam — all hit with higher duties.
Pakistan’s recent warming of ties with Washington has been increasingly visible, with the country even nominating President Trump for a Nobel Peace Prize in June.
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