US has applied a 25% tariff on Indian goods and has settled a trade agreement with Pakistan, forcing a radical change in the structure of trade in the region. Pakistan traders and economists have referred to the construction as beneficial to the economy of Pakistan and export.
According to economic experts, the US sanctions and increased tariffs on Indian goods have caused serious concern among Indian exporters. Indian business circles are calling it a major trade loss for the Modi government. The US remains a key market for India, with annual exports worth approximately $87 billion, including garments, jewelry, IT, and tech products.
The decision has prompted several US companies to plan shutting down production operations in India, which could lead to increased unemployment and reduced export revenues for the Indian government.
President of FPCCI, Atif Ikram Sheikh, stated that the Pakistan-US tariff agreement reflects strong bilateral cooperation. He said Pakistan’s business community appreciates the role of the Prime Minister, Field Marshal, Foreign Minister, and Finance Minister in securing this deal. He added that the US is Pakistan’s largest trade partner and the agreement will boost Pakistani exports.
President of the Karachi Chamber of Commerce & Industry (KCCI), Javed Balwani, said that exact tariff relief for Pakistani goods to announced soon. However, he noted that if Pakistani products receive equal or better tariff relief compared to regional competitors, Pakistan will gain market share, especially in textiles, which form the bulk of Pakistan’s exports to the US.
Zubair Motiwala, Chief Executive of the Trade Development Authority and Chairman of the Businessmen Group, told Hamariweb that while the deal is being welcomed publicly, detailed tariff figures are still awaited. He added that if the US reinstates its previous 19% tariff or offers a concession, the Pakistani textile sector stands to benefit the most.
According to the Ministry of Finance, the Pakistan-US trade agreement includes mutual tariff reductions, especially on Pakistani products entering the US. Meanwhile, the US has imposed 25% tariffs on Indian goods after failed trade talks, added import duties on several items, and banned exports from certain Indian companies. The US President has also labeled the Indian economy as a “dead economy.”
