Islamabad seeks relief on tariffs

WASHINGTON: Pakistan and the United States will begin two days of trade negotiations in Washington on Thursday, with tariffs expected to dominate the agenda as Islamabad seeks relief from new US import duties while pursuing a broader bilateral trade agreement.

The talks, which were held on Wednesday as well, follow extensive negotiations over the tariff regime announced by President Donald Trump on April 2, 2025, under the International Emergency Economic Powers Act (IEEPA), which initially imposed a 29 per cent tariff on Pakistani exports.

A Pakistani delegation that visited Washington in July 2025 succeeded in persuading US officials to reduce the proposed tariff to 19pc following discussions with the Office of the United States Trade Representative (USTR), officials familiar with the negotiations said.

Two-day trade talks with US Trade Representative start today

The delegation returning to Washington for the latest round of talks will be led by Commerce Secretary Jawad Paul and includes Foreign Office spokesperson Tahir Andrabi and other senior officials. Negotiations, scheduled for Thursday and Friday, will also seek to finalise the framework of a new bilateral trade agreement.

The tariff issue has evolved following a US Supreme Court ruling earlier this year that invalidated the IEEPA-based tariffs. The Trump administration subsequently invoked Section 122 of the Trade Act to impose a temporary global tariff of 10pc, a measure that expires on July 24 after the statutory 150-day period.

Pakistan is also among nearly 60 countries facing Section 301 investigations by the USTR over alleged forced labour and related trade practices. Islamabad has submitted detailed responses to the USTR, including another submission on Wednesday ahead of the talks. Under the Section 301 process, Pakistan faces a proposed additional tariff of 10pc, while India and 53 other countries are subject to proposed tariffs of 12.5pc. Public hearings before the USTR are continuing.

President Trump has signalled that Washington is prepared to negotiate “a better deal” with Pakistan. In a recent post on his Truth Social platform, he referred to Pakistan’s large oil and gas reserves and said US teams would be sent to explore energy opportunities. He also suggested Pakistan could eventually export oil and gas to India.

Beyond tariffs, the two sides are expected to discuss a broader trade agreement aimed at expanding bilateral commerce and investment.

The United States is Pakistan’s largest single-country export market, while Pakistan is the second largest importer of US cotton, underscoring the importance of the economic relationship between the two countries.

Published in Dawn, July 9th, 2026 ...