Tariffs turf
Listen to article
President Donald Trump has walked the talk by slapping trade tariffs across the board on allies and rivals. The intention is one of protectionism, as the New Yorker billionaire believes that American interests are in need of being protected from mindless concessions that the world had availed from the lone superpower. To what extent it impacts foreign relations seems to be a secondary focus for Trump. With this arithmetic in vogue, a minimum of 10% tariff will apply to most countries, especially the allied-ally such as the UK, and up to 20% on EU members.
Pakistan too has come in the line of fire as tariffs have gone up to 29%, leaving the beleaguered economy in a guessing-game in its aftermath. Statistics-wise, Pakistan charges 58% on imports from the US, and ships nearly a fifth of its exports primarily in the textile sector, which accounts for 1.5% of Pakistan's GDP. The only point of consolation while vetting the graph of new tariffs in the region is that Sri Lanka and Bangladesh have been put on the mat with more tariffs on their exports to the mainland, and this is where Pakistan can buckle up to stay afloat.
But the question arises: with the textile sector already in the woods due to higher cost of production, will Pakistan be able to compete in the international market? Moreover, the strategy to diversify exports to Europe is also cumbersome as the GSP-Plus status extension hangs in the balance, and a lot of fence-mending is desired on the home front.
Pakistan's biggest dilemma with reference to exports is its limited basket of products. All that is desired is a proactive policy to tap new markets and to ensure that the product is competitive and innovative in essence. With no quick-fix in sight, it would be a challenge for the policymakers to save the $6 billion annual exports to the US that account for 18% of our total exports. It's time to take up the issue on two fronts: explore new markets; and talk it out with the US for a leniency, and prepare for a tougher competition in times to come.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
2 hours ago
- Business Recorder
Trump commends ‘very strong' Pakistan leadership
WASHINGTON: US President Donald Trump has once again projected his role in de-escalating the recent Pakistan-India conflict while commending the 'very strong' leadership in Islamabad. Speaking at a White House event alongside German Chancellor Friedrich Merz, President Trump recounted how Pakistan-India tensions were 'getting close to being out of hand,' and said he intervened by speaking directly to leaders on both sides. Trump again said he felt proud of brokering a ceasefire between Pakistan and India. He said that he told both countries that if bullets are fired, there will be no trade, adding Pakistan has very strong leadership.
Express Tribune
2 hours ago
- Express Tribune
Trump says proud of stopping Pak-India war
U.S. President Donald Trump gestures, as he departs for Pennsylvania, on the South Lawn of the White House in Washington, D.C., U.S., May 30, 2025. Photo:REUTER Listen to article US President Donald Trump praised Pakistan's leadership during a meeting with German Chancellor Friedrich Merz at the White House on Thursday, repeating his stance that he saved the world from a major crisis by preventing a war between the nuclear-armed India and Pakistan. The US-German summit at the Trump's Oval Office was the first since Merz's election as the German Chancellor on May 6. Their talks covered a range of topics, including the wars in Europe, South Asia and the Middle East, besides the US-China trade issue and bilateral matters, according to media reports. During the meeting Trump insisted that the reduction in tension was possible because of his efforts and cooperation with the leaders of India and Pakistan. He praised the Indian and Pakistani leaderships and stressed that in the event of a nuclear conflict, the entire world could have been in danger. Taking pride in his role as the peacemaker, Trump regretted that he did not get the recognition he deserved for this important diplomatic achievement. "No one else could have done it," he said, referring to the ceasefire he had announced on May 10, and later confirmed by both the countries. Tensions between India and Pakistan reached a boiling point after an attack in the Indian-Illegally Occupied Jammu and Kashmir (IIOJK) on April 22, which killed 26 people. India swiftly blamed Pakistan, but did not present any evidence. However, the situation escalated as missile strikes and air raids rocked both nations, resulting in dozens of casualties between May 7 and 10. Trump said his diplomatic efforts to de-escalate the situation involved intense talks with both sides. "Pakistan has very strong leadership. Some people won't like when I say that, but it is what it is," Trump said. "I spoke to very talented people on both sides," he added. "They stopped that war. I was very proud of that."
Express Tribune
2 hours ago
- Express Tribune
US can force India into 'dialogue with Pakistan'
Listen to article Head of a high-level parliamentary delegation Bilawal Bhutto Zardari on Friday said US President Donald Trump should encourage India to engage in a "comprehensive dialogue" with Pakistan. The delegation is visiting Washington DC to present Islamabad's position following a recent military standoff with New Delhi. Weeks after their worst military confrontation in decades, India and Pakistan have dispatched top lawmakers to press their cases in the United States, where President Donald Trump has shown eagerness for diplomacy between them. After crisscrossing the world, the delegations descended this week at the same time on Washington, which played a key mediatory role in a ceasefire after four days of fighting between the nuclear-armed adversaries in May. In strikingly similar strategies, the rival delegations are both led by veteran politicians who have been critical of their countries' governments and are known for their ease in speaking to Western audiences. Pakistan has embraced an active role for the Trump administration while India, which has close relations with Washington, has been more circumspect and has long refused outside mediation on the Kashmir dispute. "Just like the United States and President Trump played a role in encouraging us to achieve this ceasefire, I believe they should play their part in encouraging both sides to engage in a comprehensive dialogue," said former foreign minister Bilawal Bhutto Zardari, whose Pakistan People's Party says it belongs neither to the governing coalition nor opposition. "I don't quite understand the Indian government's hesitance," Bilawal told AFP. "I'm the first to criticise the United States for so many reasons, but where they do the right thing, where they do the difficult task of actually achieving a ceasefire, they deserve appreciation." Bilawal, recalling how his mother, former prime minister Benazir Bhutto, was killed in a terror attack, said Pakistan was ready to discuss terrorism with India but that Kashmir as a "root cause" also needed to be on the table. He said that India was establishing a dangerous new precedent in South Asia where whenever there is a terrorist attack in any country, "you go straight to war". "I think that the fate of 1.7 billion people and our two great nations should not left in the hands of these nameless, faceless, non-state actors and this new normal that India is trying to impose on the region," he said. The two delegations have no plans to meet in Washington. NEW NORMAL Trump has repeatedly credited his administration with averting nuclear war and said the United States had negotiated an agreement to hold talks between the two sides at a neutral site, an assertion that met India's silence. India's delegation is led by one of its most prominent opposition politicians, Shashi Tharoor, a former senior UN official and writer. He said he was putting the national interest first, despite disagreements domestically with Hindu nationalist Prime Minister Narendra Modi. Tharoor said he heard "total support and solidarity for India" during his meetings with US lawmakers and a "complete understanding of India's right to defend itself against terrorism." Tharoor also noted that former Pakistani president Asif Ali Zardari, Bhutto Zardari's father, had advocated peace with India but was in power during the siege of Mumbai on November 26, 2008. "If they can't control what they're doing to us, why bother to talk to them?" said Tharoor, who pointed to the outsized role of the military in Pakistan. A high-level Pakistani parliamentary delegation, led by Pakistan Peoples Party (PPP) Chairman and former foreign minister Bilawal Bhutto Zardari met with US Undersecretary of State for Political Affairs Allison Hooker, the Pakistan Embassy in Washington said in Tweet on Friday. During the meeting, Bilawal appreciated the role played by President Donald Trump and Secretary of State Marco Rubio in facilitating the Pakistan-India ceasefire expressed the hope that it would create space for sustainable peace and stability in South Asia through dialogue. "Pakistan delegation held a productive meeting with Under Secretary of State for Political Affairs Allison Hooker," the embassy said on X. "The delegation shared its concern over India's unprovoked aggression, continued hostile rhetoric, and unlawful suspension of IWT [Indus Water Treaty]," it added. (With additional input from News Desk)
