US Tariff Creates Risks and Opportunities for Pakistan

Analysts say the impact of Trump’s 29% tariff on Pakistani exports is a mixed bag. While rivals like China, Vietnam, and Bangladesh got struck with harsher numbers, making Pakistani goods relatively cheaper, others including India, Jordan, and Turkiye face lower tariffs, meaning they’ll have the edge over Pakistan in some markets.

The US is Pakistan’s biggest buyer, with exports reaching $5.44 billion last year. From July to February alone, earnings reached $4 billion, already a 10% jump from last year. But with this tariff, the #textile sector, which makes up 90% of exports to the US, is in a tight spot. Food and cement industries might also feel the squeeze.

To stay afloat, Pakistan needs to cut energy costs, push for tariff relief, and diversify trade. Meanwhile, China, Vietnam, and Bangladesh, facing even steeper US tariffs, may seek to flood European markets, increasing competition there.

Despite the setback, textile exporters remain optimistic, confident in Pakistan’s established supply chain and quality standards. While the stock market has barely flinched as of yet, closing 0.96% higher, time will unfold the rest.