US Slaps 10% Tariff on Pakistani Goods in New Trade Action
The United States has announced a fresh 10 per cent tariff on goods imported from Pakistan as part of a wider trade action covering 60 economies. The measures, unveiled on Thursday and scheduled to take effect on Friday, were introduced over concerns that Washington's trading partners have not adopted sufficiently strong restrictions against products linked to forced labour.
Pakistan has been placed in the lower tariff bracket alongside countries including India, Bangladesh, Britain, Canada, Indonesia, Malaysia, Mexico and Sri Lanka. Other economies will face combined or higher rates of up to 12.5 per cent, depending on their existing tariff arrangements and the category assigned by US authorities.
The latest duties will replace a temporary global tariff imposed earlier in the year that was due to expire after 150 days. The Trump administration adopted a different legal route for the new measures following a Supreme Court decision in February that invalidated several earlier tariffs and limited the president's ability to impose sweeping duties through the previous mechanism.
US Trade Representative Jamieson Greer defended the decision by arguing that Washington has enforced a prohibition on forced-labour imports for decades and expects its major trading partners to introduce comparable safeguards. Officials said the economies covered by the decision account for a substantial portion of American trade, giving the measure potentially wide-reaching commercial consequences.
Pakistan had submitted detailed representations to the Office of the US Trade Representative during the investigation, including additional information before trade discussions held earlier in July. The inclusion of Pakistan in the final determination indicates that those submissions did not persuade Washington to exempt Pakistani exports from the baseline tariff.
Not all products will be affected equally. Goods already covered by sector-specific tariffs, including steel and aluminium, will remain outside the new arrangement, while selected energy products and fertilisers have also been exempted. Products qualifying under the United States-Mexico-Canada trade agreement will receive separate treatment.
The decision forms part of a broader shift towards protectionist trade policies in the world's largest economy. Washington is also conducting separate investigations into 16 economies over concerns about excessive industrial capacity, raising the possibility that additional tariffs or country-specific rates could be introduced after those inquiries conclude.
For Pakistan, the 10 per cent levy could increase the final cost of exports entering the American market and place pressure on manufacturers competing with suppliers from countries receiving more favourable treatment. Export-oriented businesses may have to absorb part of the additional charge, renegotiate contracts or pass higher costs to buyers, potentially affecting orders, margins and investment decisions.
Islamabad is expected to assess the detailed tariff notification and continue diplomatic and commercial engagement with Washington. The next steps may include requests for clarification, stronger documentation of labour protections and negotiations aimed at securing relief, while Pakistani exporters monitor how American buyers respond once the new duties take effect.