ISLAMABAD: Pakistan has officially begun negotiations with the United States over the issue of reciprocal tariffs, marking a significant step in bilateral economic engagement amid global trade tensions.
The talks commenced with a phone call between Pakistan’s Finance Minister Muhammad Aurangzeb and US Trade Representative Jamieson Greer, as confirmed by a press release from the Ministry of Finance on Friday.
The call is seen as a strategic attempt to mitigate the potential fallout from the tariff policy shift initiated by former US President Donald Trump.
Trump’s revised trade framework, introduced in April, included a 10 per cent baseline tariff on imports from all trading partners and additional duties aimed at economic rivals and allies. Analysts fear these changes could severely disrupt Pakistan’s export sector, which is heavily reliant on access to US markets.
The Pakistan Institute of Development Economics (PIDE) has cautioned that if the tariffs are fully implemented, the country may suffer export losses ranging from $1.1 to $1.4 billion annually—a warning that has prompted urgency in Islamabad’s diplomatic outreach.
Constructive First Step in Complex Talks
According to the finance ministry, both Aurangzeb and Greer engaged in what was described as a “constructive exchange of viewpoints,” signaling a mutual willingness to resolve the issue through dialogue.
While the initial contact laid the groundwork, both parties agreed that more in-depth technical discussions would follow in the coming weeks. “Both sides expressed confidence in advancing these negotiations for a successful conclusion at the earliest,” the ministry’s statement read.
Trade Diversification Now a Priority
Experts have interpreted this move as a wake-up call for Pakistan to accelerate diversification of its trade portfolio. Reliance on textile and agricultural exports to the US has made the country vulnerable to sudden shifts in American trade policy.
With global competition increasing and the WTO framework under strain, Pakistan’s ability to adapt to a changing economic landscape may determine the future resilience of its export economy.
