The White House has unveiled a new trade policy that imposes tariffs on almost every country. This shift marks a significant move by the United States toward protectionism, despite its long-standing image as a promoter of free trade.
Under the previous administration of President Donald Trump, a 29pc tariff was imposed on Pakistani products. The new policy reduces this rate to 19pc. Despite the slight relief, many in Pakistan’s business community believe the tariff remains unfair.
A trade delegation from Pakistan recently traveled to the US for negotiations. Following their visit, the 19pc tariff was confirmed. However, Javed Bilwani, President of the Karachi Chamber of Commerce, criticized the outcome. He stated that even if the delegation had not gone, the same tariff rate would have been applied.
The US has imposed a 10pc tariff on countries with which it has a trade surplus. This indicates a clear shift from open trade to national economic protection.
Read More: Pakistan gets 19pc tariff concession as compared to India
In the case of Pakistan, the trade balance currently favors the country. Yet, the 19pc tariff still applies under the new policy.
Pakistan’s business community expressed disappointment. They noted that the US had previously shown interest in collaborating with Pakistan on crude oil and cryptocurrency projects. These discussions had raised hopes for a more favorable tariff rate.
Business leaders also criticized the inconsistency of US trade behavior. While the US claims to support free trade, it continues to reshape the global trading system with high tariffs and restrictive policies.
In the US itself, debates have emerged over whether President Trump exceeded his legal authority in enforcing such wide-reaching tariff decisions.
