Pakistan Faces $700M Hit from Trump’s Tariffs

In a major blow to Pakistan's export economy, the United States has imposed sweeping tariffs on key imported goods. The move is projected to cost Pakistan more than $700 million in lost revenue, primarily impacting industries such as textiles, garments, leather, and sports goods. The development has sent ripples across Pakistan’s already struggling economy and drawn strong criticism from business leaders and trade analysts.

The latest round of tariffs is part of the U.S. government’s broader strategy to reduce trade deficits and promote domestic manufacturing. Announced as part of a new wave of economic protectionism, these tariffs target low-cost imports from developing nations — Pakistan included.

Many analysts link these measures to the current U.S. administration's efforts to win domestic political support ahead of elections. While the tariffs aim to protect U.S. industries, they pose serious threats to developing economies that rely heavily on exports to North America.

The following sectors are expected to bear the brunt of these tariffs:

• Textile and Garments – Pakistan’s largest export industry, contributing 60% of total exports
  

• Leather Goods – Including footwear, bags, and accessories
  

• Sports Equipment – A booming sector with major exports to U.S. retailers
  

• Surgical Instruments – Precision tools commonly exported to North America
  

The tariff imposition could result in:

• Loss of over $700 million in annual export revenue
  

• Job losses in manufacturing hubs like Sialkot, Faisalabad, and Karachi
  

• Reduced foreign exchange reserves
  

• A widening current account deficit
  

• Pressure on the Pakistani rupee and inflationary trends

Industry leaders have expressed serious concerns. “These tariffs could cripple our export market,” said Khalid Mahmood, Chairman of the Pakistan Textile Exporters Association. “We urge the government to immediately begin dialogue with U.S. counterparts.”

Dr. Shahid Hassan, an international trade analyst, warned that Pakistan may face long-term damage unless it adapts. “This is not just a temporary setback. It’s a call for Pakistan to diversify its export markets and reduce over-reliance on the U.S.”

The Ministry of Commerce has acknowledged the threat and indicated that it is preparing to:

• Engage with U.S. officials through diplomatic channels
  

• Explore tariff exemptions through bilateral negotiations
  

• Strengthen trade ties with alternative markets such as the EU, China, and ASEAN nations
  

• Launch incentives for exporters to explore new markets
  

However, critics argue that the government’s response so far has been sluggish and lacking urgency.

• Immediate diplomatic outreach to Washington
  

• Engage international trade bodies such as the WTO
  

• Announce export subsidies or relief packages for affected industries
  

• Market Diversification: Encourage exporters to tap into Africa, Central Asia, and Latin America
  

• Product Innovation: Invest in value-added products to command higher prices
  

• Infrastructure Development: Improve supply chains and reduce production costs
  

• FTA Expansion: Fast-track free trade agreements with emerging markets
  

The $700 million loss forecast is a wake-up call for Pakistan’s trade policymakers and exporters. With increasing protectionism in the West, it is vital for Pakistan to rethink its export strategies and broaden its global outreach.

If not addressed quickly, the economic ripple effects may be felt in employment, inflation, and growth metrics for years to come. For now, all eyes are on the government’s next move — and whether Pakistan can turn this challenge into an opportunity.