KARACHI: United States President Donald Trump announced on Wednesday the imposition of reciprocal tariffs on several countries, including a 29% tariff on Pakistani products, a move widely seen as a jolt to the global economy still recovering from the COVID-19 pandemic.
The decision came after Trump defended the measures as necessary to address long-standing trade imbalances and what he described as unfair treatment of American goods abroad.
The US leader has called for realigning trade with both allies and competitors since taking office, arguing that high tariffs imposed by partner countries have effectively subsidized their economies at America’s expense.
According to a list of tariffs shared by Reuters, Trump has imposed a 29% tariff on Pakistan.
“Pakistan has been charging us a 58% tariff on our goods,” he was quoted as saying by Geo TV. “Hence, we are imposing a 29% tariff on their products.”
The US remains one of Pakistan’s largest trading partners.
According to the Office of the United States Trade Representative, total goods trade between the US and Pakistan was estimated at $7.3 billion in 2024. US exports to Pakistan reached $2.1 billion, marking a 4.4% increase from the previous year, while imports from Pakistan totaled $5.1 billion, up 4.9% compared to 2023.
Alongside Pakistan, the US has also slapped a 26% reciprocal tariff on India, in a blow to New Delhi’s expectations of tariff relief.
“In many cases, the friend is worse than the foe in terms of trade,” Reuters quoted Trump as saying during the announcement. “We subsidize a lot of countries and keep them going and keep them in business. Why are we doing this? I mean, at what point do we say you got to work for yourselves.”
“We are finally putting America first,” he added, calling trade deficits “a national emergency.”
Trump held up boards displaying the new tariff rates, ranging from 10% to 49% for most countries. He said that in most cases, the US was imposing about half the tariff rates that other countries charge, though in some instances the rates were matched exactly.
With input from Reuters
Trump targets Pakistan with 29 percent tariff as part of new trade policy
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Trump targets Pakistan with 29 percent tariff as part of new trade policy
- US is a key market for Pakistani exports, with bilateral trade estimated at $7.3 billion in 2024
- US has also slapped a 26% reciprocal tariff on India, dashing New Delhi’s hopes of tariff relief
Pakistan says Roosevelt Hotel deal still being structured after PIA sale
- The century-old Manhattan hotel is among state-owned properties under review as Islamabad pushes a privatization drive
- Pakistan said this year it was examining multiple options after international media reported the hotel’s possible demolition
ISLAMABAD: Pakistan’s defense minister Khawaja Asif said on Wednesday the government was working on structuring a transaction for the Roosevelt Hotel in New York, a day after a leading Pakistani consortium bought a majority stake in Pakistan International Airlines, as Islamabad presses ahead with efforts to offload loss-making state assets.
Asif’s comments came after the Arif Habib Group acquired 75 percent of PIA for Rs 135 billion ($482 million), marking the government’s first major privatization deal in years and reviving focus on the future of other high-value state-owned assets, including the Roosevelt Hotel, which is owned by PIA through its investment arm.
The hotel, a century-old Manhattan property located near Grand Central Terminal, Times Square and Fifth Avenue, is considered one of Pakistan’s most valuable overseas assets, though it was closed in 2020 due to heavy losses. Asked about the future of the property following the PIA privatization, Asif told Geo TV it was still a work in progress.
“The shape of the transaction is being made,” he said, adding that a previous offer of around $375 million had not materialized.
Pakistan’s privatization plans for the Roosevelt have faced repeated delays.
Earlier this year, Muhammad Ali, adviser to the prime minister on privatization, said the government was examining multiple options after Bloomberg reported plans for its demolition.
Ali said there were various options on the table, including continuing hotel operations or entering a joint venture in which Pakistan would contribute the land while a partner brings in equity.
The government also said it wanted to complete the Roosevelt Hotel’s privatization this year, though the plan does not seem close to completion.
