Pakistani exporters have largely downplayed the potential impact of a proposed 10 percent US tariff on imports from Pakistan, arguing that the additional duty is already being paid by American buyers and would not significantly alter current trading conditions.
The US Trade Representative (USTR) has proposed extending an additional 10 percent duty on imports from Pakistan and several other countries, including Bangladesh, Indonesia, Mexico, Taiwan, the United Kingdom, and the European Union.
Exporters noted that the proposed measure is not entirely new. Following legal challenges to the Trump administration’s broader tariff regime, a temporary 10 percent duty was imposed on imports from several countries, including Pakistan. The current proposal would effectively continue that arrangement beyond its scheduled expiration on July 24.
Former Karachi Chamber of Commerce and Industry president Javed Bilwani said Pakistani textile exports already face duties of around 16.5 percent in the US market. With the additional tariff, the overall duty burden currently stands at approximately 26.5 percent. According to exporters, because American importers pay these duties, the proposed extension would not create an immediate new burden for Pakistani exporters.
However, they acknowledged that Pakistani products have already become more expensive in the US market as a result of the higher tariffs.
Exporters also pointed out that Pakistani manufacturers continue to face higher energy costs, financing expenses, and imported input costs than many regional competitors, limiting their competitiveness in global markets.
State Bank data shows Pakistan’s exports to the United States rose modestly to $5.12 billion during July-April FY2025-26 from $5 billion during the same period a year earlier, suggesting that trade flows have remained relatively resilient despite the existing tariff environment.
However, industry representatives warned that the longer-term impact could be more significant if the additional duty becomes a permanent feature of US trade policy. Textile exporter Amir Aziz said Pakistani products would gain a pricing advantage if the 10 percent duty is allowed to expire later this month, while its continuation could further weaken competitiveness against rival exporting countries with lower production costs.
For now, exporters say the proposal is unlikely to have a major immediate effect because the additional tariff is already being applied, but they remain hopeful that the temporary duty will eventually be removed to improve Pakistan’s position in the US market.