The Media Line: Tariff Threat Pressures Pakistan and US Toward Swift Trade Deal  

Tariff Threat Pressures Pakistan and US Toward Swift Trade Deal  

By Arshad Mehmood / The Media Line 

Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar stated that a trade agreement between the United States and Pakistan is nearing completion and could be finalized within a matter of days.  

Speaking at the Atlantic Council, a Washington-based think tank, Dar said teams from both countries are actively working to conclude the deal. According to him, some discussions have taken place virtually, and Prime Minister Shehbaz Sharif has appointed a special committee to finalize the details.  

He emphasized that the agreement would not require months or even weeks to complete, but only days.  

Referring to his meeting earlier that day with US Secretary of State Marco Rubio, Dar described their conversation as “productive” and pointed to measurable progress in bilateral ties over the past six months. He cited US recognition of Pakistan’s contributions to global counterterrorism efforts and acknowledged Washington’s role in facilitating the India-Pakistan ceasefire in May 2025.  

While Dar spoke optimistically about the timeline, US officials did not confirm any specific schedule for the deal’s completion. They said only that both countries discussed ways to expand trade and cooperation, particularly in sectors such as critical minerals and mining.  

Dar also thanked the United States for its role in helping to de-escalate tensions between Pakistan and India earlier this year.  

According to the Associated Press of Pakistan, a state-run news agency, Dar stressed the importance of building a long-term peace framework in South Asia. He urged the United States, as a global power and strategic partner, to adopt a constructive role in promoting regional stability.  

Earlier this month, Pakistan’s Finance Minister Muhammad Aurangzeb also held talks in Washington and described them as productive. These meetings focused on lowering tariffs and broadening trade opportunities.  

Pakistan faces significant duties on its exports to the United States, and the government hopes to reduce them as part of the new agreement. The talks are expected to address tariff structures and mechanisms for expanding market access.  

While Pakistan remains hopeful that the deal will be signed soon, the United States has not publicly committed to a timeline. The outcome will depend on how quickly both sides can resolve the remaining issues.  

Talks between the two countries gained urgency after Washington imposed a 29% reciprocal tariff on Pakistani exports in April. Although the measure was suspended for 90 days beginning in June, it has cast a shadow over Pakistan’s fragile economy, which relies heavily on exports to support recovery efforts.  

The United States remains Pakistan’s top export destination. According to official figures, Pakistan shipped $5.44 billion worth of goods to the US during the 2023–2024 fiscal year.