US Imposes 10% Tariff on Pakistan Imports Under New Trump Trade Policy

The United States has announced a 10% tariff on imports from Pakistan as part of a new trade policy introduced by President Donald Trump. The measure is aimed at addressing concerns over forced labour in global supply chains and affects 60 countries.

The new tariffs will go into effect on Friday, replacing the temporary global tariff in place earlier this year.

Pakistan Among Countries Facing 10% Tariff

Pakistan will be one of several countries to be charged a 10% import tax. Other countries in the same class are:

• India
• Canada
• Bangladesh
• Malaysia
• Mexico
• Indonesia
• Jordan
• Sri Lanka
• United Kingdom

Meanwhile, China and 37 other countries will face a 12.5% tariff under the new US trade policy.

Why Has the US Imposed the Tariff?

The tariffs are meant to incentivize trading partners to increase their work against forced labour, according to US Trade Representative Jamieson Greer.

The United States has long had prohibitions on goods that are suspected of being produced with forced labour. According to officials, the new tariff structure will help to strengthen those policies and promote improved labour practices among trading partners.

Pakistan Responded During USTR Investigation

During the investigation by the Office of the US Trade Representative (USTR), Pakistan had provided detailed responses.

The country also submitted another report before bilateral trade talks earlier this month regarding forced labour practices.

New Tariffs Replace Temporary Measures

The new tariffs come in the wake of two previous tariffs imposed by Trump that were invalidated by the US Supreme Court in February, and the temporary 10% world-wide tariff that was imposed in January.

US officials say the new measures are stronger on the law and are less likely to be successful in court.

Some Products Exempt From the New Tariffs

The new tariffs will not apply to certain categories of goods, such as:

Global Reaction to the New US Tariffs

The announcement has received criticism from several US trading partners.

• Japan expressed regret over the decision.
• Australia described the tariffs as unjustified and inconsistent with its free trade agreement with the United States.

More Trade Measures Could Follow

The Trump administration is also probing 16 economies on balance sheet concerns stemming from over capacity in industrial sectors. Additional tariffs may be imposed in the next few months, according to trade experts.

The new moves underscore the evolving protectionist philosophy of Washington’s trade policy and provide the administration with more leverage in future trade talks, analysts say.

The new 10% US tariff on Pakistan is another major development in the US trade policy. Pakistan’s export industry will be expected to be affected by the new tariffs, and the country has made submissions to US authorities to defend its labour practices. In the coming months, businesses and exporters are likely to keep a close watch on the impact of these actions on Pakistan-U.S. commerce.