Islamabad, Aug 1, 2025: The United States has imposed a 19% tariffs on Pakistan goods, as President Donald Trump Donald Trump stepped up his global trade crackdown ahead of a key Friday deadline.
The revised tariff rate, lower than the initially proposed 29%, was finalized following direct negotiations between Islamabad and Washington now placing Pakistan alongside other Asian economies such as the Philippines, Indonesia, Malaysia and Thailand. Pakistan is now among 69 countries affected by what Trump calls unfair trade practices to protect US economic and security interests.
The newly announced tariffs ranging from 10% to 41% will officially come into effect within the next week under an executive order issued by President Trump.
According to the Executive Order issued on July 31, 2025, the United States is recalibrating the Harmonized Tariff Schedule (HTSUS) to reflect new duty rates based on the level of trade cooperation. Countries without favorable trade agreements or those deemed non-compliant with U.S. national security priorities now face sharply increased tariffs.
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For Pakistan, the new tariff rate is likely to impact key export sectors including textiles, leather, surgical instruments,and food products. In fiscal year 2024, Pakistan’s exports to the U.S. exceeded $5 billion with textiles alone contributing more than 60% of the total. Trade analysts fear the higher tariff could dent Pakistan competitive edge in the U.S. market, especially against countries like Bangladesh and Vietnam, who now face similar tariff bands between 19% and 20%.
Tariff highlights under the updated schedule include:
- Canada: 35%
- India, Kazakhstan, Moldova: 25%
- Vietnam, Taiwan, Sri Lanka: 20%
- Malaysia, Pakistan, Indonesia, Thailand, Philippines: 19%
- Laos, Myanmar: 40%
- UK, Brazil: 10%
The order said that goods from all other countries not listed in an annex would be subject to a 10% US tariff rate.
READ MORE: Trump to Hit Indian Goods With 20–25% Tariffs
Meanwhile, the European Union received a mixed treatment. Products with existing tariffs above 15% remain unaffected, while others are adjusted to meet a baseline of 15%.
To combat tax evasion, the executive order also enforces a hefty 40% tariff on transshipped goods, those rerouted through third countries to avoid direct tariffs, along with possible penalties and enforcement measures.
Additionally, the U.S. Customs and Border Protection (CBP) will issue a biannual report listing known transshipment facilities and countries to guide public procurement and commercial due diligence.
