Pakistan seeks tariff parity with India, Bangladesh in talks with US: report

Pakistan has intensified diplomatic efforts in Washington to secure a reduction in the recently agreed 19% US tariff to 15-16%, following revised tariff concessions granted to regional competitors, including India and Bangladesh, The News reported. 

A delegation led by the commerce secretary has been in the United States for four days, holding discussions with officials from the Office of the United States Trade Representative (USTR) to review the tariff structure and seek parity in treatment, according to commerce ministry sources.

Under the updated tariff framework, Indian exports to the US are subject to an 18% tariff, compared to 19% for Pakistan, while Bangladesh and Vietnam face average tariffs of around 20%. Officials say that even a 1 percentage point difference can affect sourcing decisions in price-sensitive sectors such as textiles and garments.

Pakistani authorities have also raised concerns over the US decision to grant zero-duty access to a substantial portion of Bangladeshi garment exports, provided they are manufactured using US-origin cotton. Islamabad has argued that similar concessions should apply to Pakistani apparel made from American cotton.

The discussions are taking place amid growing bilateral trade. Goods trade between Pakistan and the United States reached $7.6 billion in FY2024-25, with Pakistan exporting $5.8 billion and importing $1.8 billion, reflecting about 16% year-on-year growth. From the US calendar-year perspective, total trade in goods and services stood at approximately $10.1 billion in 2024.

Meanwhile, U.S. President Donald Trump, on Friday, responded with fury to a Supreme Court ruling that he did not have the power to unilaterally set tariffs on imports, denigrating individual justices as he vowed to continue a global trade war that has kept the world on edge for a year.

Trump announced an immediate new 10% tariff on imports from all countries, on top of any existing tariffs. The law allows him to impose that levy for 150 days, although it could face legal challenges.

The court’s landmark 6-3 ruling upended the leverage Trump and his trade envoys have wielded over foreign governments at negotiating tables to reshape diplomatic relations and global markets.