By Dr. Muhammad Noaman Saeed Khattak
The world of international trade has once again been stirred by the familiar voice of Donald Trump. With his latest policy announcement, a sweeping set of new tariffs now hangs over the heads of more than 180 countries. For Trump, this is about restoring economic independence to America—what he calls “Liberation Day.” But for countries like Pakistan, it feels less like liberation and more like economic turbulence.
As part of this strategy, a blanket 10% tariff has been placed on all imports to the United States. But that’s just the start. Countries like China are seeing rates as high as 54%, and Pakistan has been struck with a 29% tariff on its exports to the U.S. That’s nearly a third of every dollar now taxed before Pakistani goods even reach American shelves.
For a country whose economy heavily depends on textile exports, this is no small shake. Nearly 80% of Pakistan’s exports to the U.S. come from the textile and apparel industry. This sudden hike in tariff means those goods just got significantly more expensive—and less attractive to American buyers. Orders may decline. Competition from India, Bangladesh, and even Vietnam may pick up. And in Pakistan, thousands of workers whose livelihoods depend on these factories could face job insecurity.
But this isn’t the time to sulk—it’s the time to think.
Pakistan’s finance leaders, instead of panicking, have called for adaptation. The message is simple: in every crisis, there’s a door to change. That could mean entering new markets, negotiating smarter trade terms, or simply rethinking what we sell and how we sell it.
The stock market didn’t take the news well. Investors reacted fast, with the Pakistan Stock Exchange falling more than 5% in a day. But that’s what markets do—they reflect fear before they reflect strategy.
And make no mistake: this isn’t just about Pakistan. The entire globe is being tested again. When one country pulls out a big move like this, the ripple touches everyone. We are reminded again that in today’s economy, no nation floats alone.
So where does Pakistan go from here? Forward. Carefully, smartly, and with eyes open. It’s time to reduce dependence on a single trade partner. Time to build new trade bridges. Time to create value, not just volume.
Trump’s tariffs might aim to make America stronger—but they’ve given the rest of the world a reason to get wiser.
