Pakistan will dispatch a high-level delegation to the United States in the coming weeks to negotiate newly announced tariffs, following a temporary 90-day suspension of the measures by U.S. President Donald Trump, officials confirmed.
Last week, Washington imposed a 29% tariff on Pakistani goods as part of a sweeping effort targeting multiple trade partners, sending shockwaves through global markets. However, on Wednesday, President Trump announced a temporary delay in the implementation of the tariffs, extending a 90-day grace period during which all affected countries will still be subject to a baseline duty of 10%.
Despite the delay, Pakistan plans to move forward with talks. “A high-level government delegation is scheduled to depart for Washington in the coming weeks to hold talks with U.S. officials,” a senior official from the Ministry of Commerce told AFP on Thursday, speaking on condition of anonymity.
The decision was initially announced by Prime Minister Shehbaz Sharif’s office on Wednesday evening. The prime minister also hosted a U.S. delegation led by State Department official Eric Meyer in Islamabad the same day. According to an official statement, both sides expressed interest in strengthening bilateral relations and deepening economic cooperation.
The latest trade tensions emerge at a time when Pakistan is seeking to solidify its fragile economic recovery. The country narrowly avoided default in 2023 after enduring a political and financial crisis that pushed its debt to critical levels. A $7 billion International Monetary Fund (IMF) bailout helped stabilize the economy, leading to reduced inflation and a modest increase in foreign exchange reserves.
According to data from the Office of the U.S. Trade Representative, bilateral trade between the two countries reached $7.3 billion in 2024, with the U.S. importing $5.1 billion worth of Pakistani goods. Cotton and textiles remain the backbone of Pakistan’s export economy and would be among the sectors most affected by the new tariffs.
Economic analysts warn that the steep U.S. duties could undermine Pakistan’s export competitiveness at a time when the country is still recovering from economic shocks. Islamabad hopes that negotiations will lead to a rollback or easing of the imposed tariffs.
While the U.S.-Pakistan relationship has historically included strategic military and regional cooperation, particularly during the war in Afghanistan, its strategic relevance has diminished since the withdrawal of American forces in 2021. Today, the relationship is largely confined to counterterrorism collaboration and trade.
With diplomatic channels now active and economic stakes high, the upcoming visit to Washington may prove critical in shaping the future of U.S.-Pakistan trade relations.
