In a major blow to Pakistan’s economy, the U.S. has imposed a 29% tariff that could slash exports by up to 15%.
Government documents reveal a $1B annual loss, with textiles and IT sectors in the crosshairs.
The United States has imposed a 29% tariff on select Pakistani products — a move that government documents reveal could cost Pakistan at least $1 billion annually.
According to official trade data accessed by Political Uprise News, the total trade volume between Pakistan and the U.S. stood at $7.3 billion in the last fiscal year.
Pakistan exported $5.1 billion worth of goods to the U.S., while importing about $2.1 billion, leaving the U.S. with a $3 billion trade deficit — one that has increased by 5.2% compared to 2023.
The most affected sector is textiles and apparel, which account for 55% of Pakistan’s total exports to the U.S.
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Sources within the Ministry of Commerce warn that the new tariff could make Pakistani textiles significantly more expensive in the U.S. market, leading to a drop in demand.
Pakistan’s IT sector, which now exports over $1 billion in services to the U.S., is also expected to feel the heat, with rising costs potentially eroding its competitiveness in the global market.
Ministry insiders project an overall 10-15% drop in Pakistan’s exports as a direct result of the tariff, warning that the country’s trade deficit could widen even further.
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Additionally, finding alternative markets for key products like rice and textiles may prove difficult in the short term.
Officials stress that urgent trade talks with the U.S. are now essential to avoid long-term damage and to seek exemptions or adjustments to the newly imposed tariff structure.
