Pakistani exporters see limited impact from proposed 10% US import duty

Pakistani exporters say a proposal under consideration in Washington to impose an additional 10% duty on imports is unlikely to significantly impact the country's exports, although it could further increase the cost of Pakistani products in the US market.

Reuters reported on Wednesday that the Office of the United States Trade Representative (USTR) has proposed extending a 10% additional duty on imports from several economies, including Pakistan, Canada, Bangladesh, Ecuador, Indonesia, Mexico, Argentina, Taiwan, the United Kingdom and the European Union.

Exporters noted that the duty is paid by US importers, making imported goods more expensive for American buyers.

Javed Bilwani, a former president of the Karachi Chamber of Commerce and Industry and an exporter, said Pakistani textile products already face duties of around 16.5% in the US market, while an additional 10% tariff was imposed under measures introduced by President Donald Trump.

According to Bilwani, Pakistani products currently face total duties of approximately 26.5% in the United States, increasing their cost relative to competing products.

He said Pakistani exports are already at a disadvantage due to higher domestic energy costs, elevated financing costs and expensive imported inputs used in manufacturing.

Bilwani added that the current 10% additional duty is scheduled to expire on July 24, and the latest proposal aims to continue the measure beyond that date.

State Bank of Pakistan data shows exports to the United States increased to $5.124 billion during July-April FY26, compared with $5 billion in the corresponding period of the previous fiscal year. Exports rose to $6.03 billion in FY25 from $5.44 billion in FY24.

Imports from the United States also increased. During July-April FY26, Pakistan imported goods worth $2.54 billion, compared with $1.9 billion in the same period of the previous year. Imports stood at $2.35 billion in FY25 and $1.875 billion in FY24.