Pakistan, US move closer to securing trade deal as tariff talks continue

Pakistan and the United States have taken another step forward in their ongoing efforts to resolve trade-related matters, particularly reciprocal tariffs imposed by US President Donald Trump, as top officials from both sides convened virtually on Monday.

The virtual meeting, held between Muhammad Aurangzeb, Pakistan’s Finance Minister and Howard Lutnick, United States’ Commerce Secretary, focused on deepening trade and investment ties.

Both sides resolved to carry forward their negotiations through a constructive engagement to finalise the trade deal at the earliest, read a statement released by the Ministry of Finance on Tuesday.

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“The discussions focused on meaningful engagement in trade, investment and deepening economic ties mutually beneficial to both sides, with the understanding that further technical-level detailed discussions, in the coming days, will be held based on a mutually agreed roadmap.

“Both sides expressed confidence in advancing these negotiations for successful conclusion at the earliest,” read the statement.

Back in April, Trump ignited a potentially ruinous trade war as he slapped sweeping tariffs on imports from around the world and harsh additional levies on key trading partners, including Pakistan.

Islamabad is attempting to appease the US to seek reprieve from the 29% reciprocal tariffs imposed by President Donald Trump. While those levies are on hold until July, Pakistan has sent a trade delegation to Washington to bridge the trade gap.

The US is Pakistan’s largest export market with over $5 billion in annual exports as of 2024, while Pakistan’s imports from the US are about $2.1 billion.

Earlier, Finance Minister Muhammad Aurangzeb, in an interview with Bloomberg, said Pakistan is looking to buy more goods from the US and remove non-tariff barriers to escape Trump’s high tariffs.