US Tariffs and the Reciprocal Trade Agreement
Overview
The US imposed a 29% 'reciprocal' tariff on Pakistani goods in April 2025, later cut to 19% after a July 2025 deal. After the Supreme Court ruled in February 2026 that IEEPA does not authorise tariffs, a temporary 10% Section 122 tariff applied while both sides negotiated a reciprocal trade agreement.
Latest updates
Pakistani and US officials held talks in Washington and reported significant progress towards a reciprocal trade agreement as the temporary tariff neared expiry
The US Supreme Court held that IEEPA does not authorise tariffs; a 10% tariff under Section 122 of the Trade Act of 1974 followed from 24 February for 150 days
The US announced revised reciprocal tariff rates, setting Pakistan's at 19%, down from 29%; Pakistan described it as 'balanced and forward-looking'
Positions on the record
Islamabad says
Islamabad called the 19% rate a 'balanced and forward-looking' outcome that would help Pakistan expand its footprint in the US market.
Quoted or summarised from the linked public statements only.
Recent developments
The United States is Pakistan's largest single-country export market, and textiles dominate those sales, so tariff levels relative to competitors such as Bangladesh, Vietnam and India shape jobs and foreign-exchange earnings. The talks also bundle Pakistani purchases of US energy and farm goods into the wider relationship.
Recommended resources
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Islamabad says new tariff arrangement to help Pakistan expand footprint in US market
via Arab News
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US Supreme Court holds IEEPA does not authorize tariffs
via DLA Piper
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Pakistan says progress made in talks with US for reciprocal trade deal
via Arab News
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Pakistan, US cite significant progress in Washington trade talks
via Express Tribune
