The United States administration led by President Donald Trump has imposed a 19 percent tariff on Pakistani goods, revised from the previous 29 per cent, making this the lowest tariff rate of any South Asian country.

 

According to an executive order detailing the tariffs issued on Thursday, it was announced that Pakistan is set to face a 19 percent tariff rate as the US president’s tariff deadline comes to an end on August 1.

 

Islamabad's trade surplus with the US was approximately $3 billion in 2024, primarily driven by textile exports. The US is Pakistan's largest market for textiles, according to reports.

 

The order listed higher import duty rates of 10 to 41 percent starting in seven days for 69 trading partners as the 12:01 am EDT (9:01 am PKT) deadline approached. Some of them had reached tariff-reducing deals, and some had no opportunity to negotiate with his administration.

 

According to the order, goods from all other countries not listed would be subject to a 10 percent US import tax.

 

Goods from India appeared to be headed for a 25 percent tariff after talks bogged down over access to India’s agriculture sector, drawing a higher-rate threat from Trump that also included an unspecified penalty for New Delhi's purchase of Russian oil.

 

Trump's order stated that some trading partners, “despite having engaged in negotiations, have offered terms that, in my judgement, do not sufficiently address imbalances in our trading relationship or have failed to align sufficiently with the United States on economic and national-security matters.”

 

Trump set rates, including a 35 percent duty on many goods from Canada, up from 25 per cent previously, and a steep 50 percent for Brazil, 20 percent for Taiwan, 39 percent for Switzerland, 15 percent for South Korea, and 20 percent for Bangladesh, according to a presidential executive order.

 

Regarding the higher import tax on Canada, the second largest US trading partner after Mexico, media reports quoted an official as saying that Canadian officials “haven’t shown the same level of constructiveness that we’ve seen from the Mexican side.”

Meanwhile, China faces an August 12 deadline to finalize a lasting tariff deal with the Trump administration, following preliminary agreements made in May and June this year aimed at halting the escalating tariff war and preventing a disruption in rare earth mineral supplies.