ISLAMABAD (PEN) : U.S. President Donald Trump announced on Friday that Pakistani representatives will visit the United States next week to engage in trade talks, as Pakistan faces a potential 29% tariff on its exports to the U.S.
Tariff Concerns
The proposed tariff stems from a \$3 billion trade surplus Pakistan holds with the United States. This move is part of broader measures implemented by Washington last month affecting several countries. Trump emphasized that any potential conflict between Pakistan and India could hinder trade negotiations, referencing recent intense military clashes between the nuclear-armed neighbors.
Diplomatic Efforts
In parallel to discussions with Pakistan, the U.S. is nearing a trade agreement with India. Indian Trade Minister Piyush Goyal recently visited Washington to further trade negotiations, with an interim deal expected by early July. India is also subject to a 26% tariff on exports to the U.S.
Ceasefire Mediation
Trump also claimed credit for brokering a ceasefire between Pakistan and India, asserting that he used trade as a negotiation tactic. He stated that his administration cannot trade with nations engaged in conflict, highlighting the importance of peace for economic cooperation. The ceasefire was achieved on May 10, with the intervention of the United States and other international actors.
Looking Ahead
As Pakistan prepares to send its delegation to the U.S., both nations aim to resolve tariff issues and strengthen bilateral trade relations. The outcome of these negotiations could have significant implications for Pakistan’s export-driven economy, particularly its textile industry, which heavily relies on exports to the U.S.
