By ABDULLAH 
In a dramatic turn of events on the global US trade Deals, Pakistan has emerged with a relatively favorable outcome, securing a 19% tariff on its exports to the United States — significantly lower than the rates slapped on many other developing nations — amid a sweeping tariff regime launched by US President Donald Trump on August 1.
This breakthrough comes alongside a joint US-Pakistan oil development deal, signalling a notable shift in Washington’s attitude towards Islamabad as Trump aggressively reworks global trade dynamics under the banner of his “New World Trade Order”.
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According to an executive order signed by President Trump, dozens of countries are now subject to steep new import tariffs, ranging from 10% to 50%. Nations like:
- Brazil: 50%
- India: 25%
- Canada: 35%
- Bangladesh & Vietnam: 20%
- Iraq: 35%
- Indonesia: 19%
- Switzerland: 39%
…faced significantly higher duties than Pakistan, whose final tariff was revised downward from 29% to 19%, following last-minute negotiations led by Pakistani Finance Minister Muhammad Aurangzeb and Commerce Secretary Jawad Paul in Washington.
“This is a real win-win deal that protected Pakistani exports from steeper retaliatory tariffs,” said Aurangzeb.
While official details remain limited from the US side, Pakistan’s government has confirmed that:
- The tariff rate on Pakistani goods is fixed between 15% and 20%, with 19% being the operational baseline.
- The agreement promises to boost bilateral trade, attract US investment, and enhance market access.
- It prioritizes joint ventures in energy, minerals, IT, and emerging sectors like cryptocurrency and AI.
- A joint oil exploration deal was announced, focused on Pakistan’s untapped energy reserves.
President Trump, posting on Truth Social, stated:
“We have just concluded a deal with Pakistan to jointly develop their massive oil reserves.”
In an official statement, Prime Minister Shehbaz Sharif praised the agreement as a “landmark moment” in US-Pakistan relations:
“This deal enhances our cooperation and expands the frontiers of our enduring partnership.”
Islamabad views the deal as a geopolitical and economic win, positioning Pakistan more favorably than regional competitors like India, which faces a 25% tariff and additional penalties for its defense and oil ties with Russia and Iran.
Trump’s latest trade offensive affects 69 countries and marks the most aggressive use of his emergency economic powers since his 2018 trade war with China.
Key highlights include:
- Canada: Hit with a 35% tariff (up from 25%) for “failing to curb narcotics trafficking.”
- India: Targeted with 25% duties and further penalties over agriculture access and Russian oil ties.
- Mexico: Granted a 90-day reprieve to finalize a broader pact.
- South Korea & EU: Struck last-minute deals with 15% to 20% tariffs, sparing them the full brunt.
“Tariffs are making America GREAT & RICH Again,” Trump declared on Truth Social.
Markets reacted cautiously, with modest declines in Asian stocks and futures, signaling investor uncertainty over the scope and longevity of these protectionist measures.
Analysts say Trump’s actions signal a harder line on India, which has traditionally enjoyed bipartisan goodwill in Washington.
“We’ve done very little business with India. Their tariffs are too high,” Trump said in a post.
Commentators believe India’s reluctance to open its agriculture sector, and continued military dealings with Russia, were major sticking points.
Experts attribute the turnaround to several factors:
- Discovery of rare earth materials and oil in Pakistan’s resource belt.
- Islamabad’s strategic geography, bordering Afghanistan and Iran.
- Willingness to compromise and collaborate, contrasting India’s more rigid negotiation stance.
“For the first time in decades, the US appears to be rewarding Pakistan’s flexibility,” said Prof. Christopher Clary of SUNY Albany.
- The trade deal sets the stage for deepened US-Pakistan cooperation, particularly in energy infrastructure, IT, and digital finance.
- Analysts expect a surge in US foreign direct investment (FDI) into Pakistan.
- The Pakistan Oil Exploration Project, still in planning, could become a flagship symbol of this new alignment.