- ISLAMABAD — Pakistan Prime Minister Shehbaz Sharif has agreed to send a
high-level delegation to the United States, which will offer lower tariffs and
increased market share, amid concerns that new tariffs could significantly
reduce Islamabad's exports to Washington.
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- As per government sources, the delegation would propose a
reduction in tariffs on at least 55 products, along with an increased market
share and also address the US' non-tariff concerns related to the ban on social
media platform 'X'.
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- "These lowered tariffs would be largely in line with
the tariffs availed by China under the bilateral Free Trade Agreement
(FTA)," it said.
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- Sharif's decision comes after US President Donald Trump's
enhanced tariff announcement led to some Pakistani exporters receiving halt
requests from their buyers in Washington.
Also read: People were getting 'yippy,' says Trump on tariff pause, lowers levies on countries like India for not retaliating
- Stating that the US-Pakistan trade relations span decades,
Sharif said: "The government is keen to further strengthen the trade
partnership with the US."
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- Economic think-tanks have estimated a loss of at least $564
million after the US announced a 29 per cent tariff on Pakistani goods.
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- According to a policy think tank Tabadlab, "The 29 per
cent increase in tariffs on Pakistani goods will cause about $564 million loss
in exports to the US during first year 2025-26. In an unlikely worst-case
scenario, the losses may jump to $2.2 billion."
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- The trade war between the US and China escalated further
after Beijing retaliated and imposed an additional 34 per cent tariff on US
goods in response to US' 104 per cent duties imposed on Chinese goods.
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