Pakistan and the United States have taken meaningful steps toward resolving long-standing trade tensions, particularly the steep tariffs imposed during former President Donald Trump’s administration. These tariffs—some reaching up to 29%—have been a major barrier to trade, negatively affecting Pakistan’s export potential. In a recent development, both sides have agreed to suspend the tariffs until July, allowing time for further negotiations.

In a virtual meeting held on Monday, Pakistan’s Finance Minister Muhammad Aurangzeb and US Commerce Secretary Howard Lutnick engaged in constructive dialogue focused on strengthening bilateral trade and investment. The two officials agreed to continue technical-level discussions to reach a final and mutually beneficial trade agreement.

A major point of concern for Pakistan has been the high tariff rates on its exports to the United States, which remains Pakistan’s largest export market with over $5 billion in annual exports. The talks aim to reduce or eliminate these duties to promote a more favorable environment for Pakistani exporters.

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At the same time, Pakistan is keen to enhance its imports from the US to create a more balanced trade relationship. Officials from both sides stressed the importance of building a two-way trade model that promotes equitable growth, investment, and deeper economic cooperation.

This progress signals a shift in the overall dynamics of the Pakistan–US economic partnership. With ongoing dialogue and a shared interest in economic growth, both countries are optimistic about reaching a final agreement before the current tariff suspension expires.

If successful, the deal could offer significant relief to Pakistani exporters, encourage US investment in Pakistan, and contribute to long-term economic stability for both nations.