Trump signs executive orders, imposes 29pc tariff on Pakistan

US President Donald Trump has escalated the trade war by imposing new tariffs on imports, affecting countries worldwide, including Pakistan.

The baseline tariff on all imports is increased by 10 percent, while Pakistan faces a 29 percent tariff, Trump emphasizing that Pakistan imposes a 58 percent tariff on US goods.

The announcement, made in the White House Rose Garden, has created uncertainty in global financial markets.

Japan’s Nikkei stock index fell to an eight-month low, while US and European stock futures dropped sharply. Since mid-February, US stocks have lost nearly $5 trillion in value.

China, already facing a 20 percent tariff, will now see an additional 34 percent duty on its exports. In response, Beijing has urged Washington to cancel these measures and has vowed to retaliate. Close US allies such as the European Union (20 percent) and Japan (24 percent) have also been hit.

The new 29 percent tariff on Pakistani exports could severely affect textiles, garments, and other major industries. Pakistan relies heavily on exports to the US market, and these tariffs may lead to reduced trade, higher costs, and potential job losses.

Trump defended the tariffs, saying they would protect American jobs and ensure fair trade practices. However, experts warn that such trade policies could lead to economic slowdowns, rising prices, and recession risks.

Canada and Mexico, the US’s largest trading partners, were not affected by the latest tariff increase, as they already face 25 percent duties on many goods. Meanwhile, some Republican lawmakers in the US have expressed concern over Trump’s aggressive approach.

Following the announcement of discounted reciprocal tariffs, a bill was introduced in the US Senate to remove some of Trump’s tariffs, but it faces slim chances of approval in the Republican-controlled House of Representatives.

Trump has also ended a trade loophole that allowed low-value shipments (under $800), also known as “de minimis”, from China and Hong Kong to enter the US duty-free. This move, set to take effect on May 2, aims to curb drug trafficking, particularly fentanyl imports.

More tariffs on semiconductors, pharmaceuticals, and critical minerals may follow, further increasing trade tensions worldwide.

With new auto tariffs set to begin this week, the US trade policy is becoming more restrictive. European leaders have criticized the decision, warning that a full-scale trade war could damage economies worldwide.

Pakistan, already struggling with economic challenges, now faces higher costs for exporting goods to the US. This development could harm trade relations and affect Pakistan’s economy in the coming months.

Full List of Countries Hit With Reciprocal Tariffs

Web Desk