Pakistan Urged to Diversify Trade Amid US Tariff Impacts

Following the implementation of a 29% trade tariff by the Trump administration on Pakistan, experts at a recent seminar emphasized the need for Pakistan to diversify its trade strategies to mitigate the adverse effects, particularly on its textile sector. The Sustainable Development Policy Institute highlighted that while Pakistan's tariff is lower than those imposed on Bangladesh and Vietnam, it remains a significant concern given that US exports account for 19% of Pakistan's total exports. The global reaction to the tariffs, which have been described as part of a broader 'reciprocal tariff regime,' has led to uncertainty in markets and calls for negotiations from over 50 nations to lower trade barriers. Critics argue that these tariffs are punitive and disproportionately impact developing countries, risking their economic stability and development prospects. In particular, countries like Cambodia and Bangladesh face severe challenges due to high tariffs, prompting some nations to seek concessions from the US in hopes of mitigating the economic fallout. The situation reflects a significant shift in US trade policy, raising concerns about long-term impacts on global trade dynamics.