Trump tariffs could pose ‘$1.4bn risk to Pakistan exports’

The increase in trade tariffs on Pakistani products announced by US President Donald Trump — later suspended temporarily — could have a devastating impact on Pakistan’s important exports and serves as a wake-up call for diversification, according to a state-owned think tank. “A storm may be brewing on Pakistan’s trade horizon,” said the Pakistan Institute of Development Economics (Pide), adding that the “proposed reciprocal tariffs by the United States could have a devastating impact on the country’s export sector”. In a stark policy note, the institute cautioned that these tariffs could lead to macroeconomic instability, significant job losses and a critical reduction in foreign exchange earnings. The study, titled ‘Impact of Unilateral Tariff Increase by United States on Pakistani Exports’ and conducted by Dr Muhammad Zeshan, Dr Shujaat Farooq and Dr Usman Qadir, analysed the consequences of a proposed 29 per cent reciprocal tariffs on Pakistani exports to the United States.