Overcoming a bleak tariff situation

Reciprocal US tariffs are altering the dynamics of global trade partnerships, making it critical for Pakistan to gauge the stakes and craft a multi-pronged policy response across time horizons. Over the first 10 months of FY25, Pakistan’s exports to the United States totalled $4.46 billion, while imports from the US were valued at $2.05bn. According to the World Trade Organisation (WTO) tariff profile, Pakistan levies a trade-weighted average tariff of 7.2 per cent on all inbound goods, whereas the US applies a comparatively higher average tariff of 10.7pc on its imports from Pakistan. Applying these tariffs, the US collected $321 million in tariff revenue on Pakistan exports, while Pakistan earned $219m in tariffs on American imports. Although Pakistan enjoys a positive trade balance, the US garners a greater fiscal gain, collecting approximately 32pc more in tariffs over the 10-month span.