Pakistan’s international bonds came under pressure on Friday after US President Donald Trump announced new tariffs on 60 trading partners, including Pakistan, reported Reuters.
Pakistan’s 2036 sovereign bond issuance declined 0.5 percent, trading at 97.80 cents on the dollar after the tariff announcement.
Bonds of other emerging markets, including Sri Lanka and Indonesia, also weakened as investors reacted to the latest US trade measures.
The United States announced new tariffs ranging between 10 percent and 12.5 percent on goods from several countries over concerns related to enforcement of forced labour import restrictions. Pakistan was among the countries assigned a 10 percent tariff rate alongside India, Bangladesh, Canada, Britain, Indonesia, Malaysia and others.
The tariff announcement came as Washington replaced a temporary 10 percent global tariff that was set to expire. The new measures are part of the Trump administration’s effort to rebuild a tariff framework aimed at protecting US industries and reshaping global trade relationships.
The new tariffs cover nearly 99.4 percent of US imports, although several products, including oil, gas, fertilisers, and certain food items, have been exempted.
Pakistan had earlier submitted responses to US trade authorities regarding forced labour concerns and had been engaged in discussions with Washington to address the issue.
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