Washington D.C. – U.S. President Donald Trump announced on Friday that a delegation from Pakistan will be visiting the United States next week to initiate discussions on proposed tariffs, as Islamabad works to avoid potentially damaging trade penalties.
The development comes in the wake of Washington’s global tariff reforms announced last month, under which Pakistani exports could face tariffs as high as 29%, due to a $3 billion trade surplus with the U.S.—the world’s largest economy.
The formal negotiations between both nations commenced with a telephone conversation between Pakistan’s Finance Minister Muhammad Aurangzeb and U.S. Trade Representative Jamieson Greer, the Finance Ministry confirmed in a press release.
“Pakistan representatives are coming in next week,” President Trump stated while speaking to reporters at Joint Base Andrews after disembarking from Air Force One.
Touching on broader regional tensions, Trump added, “We’re very close to making a deal with India as well. But I’ve made it clear—if either India or Pakistan are headed towards conflict, I’m not interested in making a deal with them.”
Escalating Tensions and U.S. Intervention
This comes on the heels of heightened military tension between India and Pakistan, triggered by unsubstantiated allegations from New Delhi over a deadly attack in occupied Kashmir’s Pahalgam region. India launched airstrikes inside Pakistan in early May, reportedly resulting in civilian casualties. In response, Pakistan shot down five Indian fighter jets and intercepted drones violating its airspace.
A series of retaliatory strikes followed until American diplomatic intervention on May 10 helped secure a ceasefire between the two nuclear-armed neighbors.
Trade Negotiations Intensify Across South Asia
Meanwhile, Indian Trade Minister Piyush Goyal recently visited Washington to accelerate trade talks. India is aiming to sign an interim trade deal with the U.S. by early July. As part of its negotiations, India is reportedly preparing to allow U.S. companies to bid on over $50 billion worth of federal contracts.
India currently faces 26% tariffs on exports to the United States, slightly lower than those Pakistan risks.
Economic Repercussions for Pakistan
A recent report by the Pakistan Institute of Development Economics (PIDE) warned that the proposed U.S. tariffs could result in an annual export loss of $1.1 to $1.4 billion for Pakistan. The think tank described the situation as a potential “devastating impact” on the country’s export-dependent economy and urged policymakers to diversify export destinations and product lines.
The Trump administration’s tariff overhaul, implemented on April 2, established a 10% baseline tariff for all U.S. trading partners, with additional reciprocal tariffs imposed based on trade imbalances.
