PM Shehbaz forms committee to deal with US reciprocal tariffs

#Shehbaz #forms #committee #deal #reciprocal #tariffs

Following the implementation of mutual prices by the United States (US) President Donald Trump on Pakistani goods, Prime Minister Shahbaz Sharif formed a 12 -member steering committee on Friday to deal with the move, which analysts say, the country’s export competition.

“Prime Minister [Shehbaz Sharif] A notification issued by the Prime Minister’s Office (PMO) on Friday said that it was a pleasure to set up a steering committee for a deep analysis and policy response for the recently announced US bilateral rates.

The 12 -member finance minister, the Minister of Commerce, the Minister for Petroleum, the Assistant Special, the Chairman of the Federal Board of Revenue, the Chairman of the Foreign Board, the Foreign Affairs Minister for Foreign Affairs, the Minister for Foreign Affairs for the Minister of State for Minister for Minister for Minister for Minister for Minister for Minister for Minister DC, and Secretary Commerce.

The move came when Trump cleared the mutual prices on US trade partners. This day was called “Liberation Day” by Trump, which signed an executive order on almost all countries, and then imposing additional taxes on countries, which the United States has accused of receiving more taxes on US goods.

The Trump administration imposed a 29 % tariff on Pakistani imports, plus 10 % of the baseline tariff imposed on all imports, reached the total tariff on Pakistani products to 39 %.

In his remarks, President Trump said, “Pakistan is receiving 58 % tariffs on our goods from us. So, we are imposing 29 % tariffs on their products.”

The baseline 10 % tariff will be applicable with an additional 29 % mutual revenue starting from April 5, 2025 to 9 April 2025.

A senior trade official told The News that the move would reduce Pakistan’s prices competition and make it difficult to maintain sales in the US market against “lower tariff countries” like India and Turkey.

The fines announced by Trump created a decisive movement in the global financial markets and condemned by other leaders, which has calculated the end of the era of trade liberalization for decades.

Meanwhile, the notification issued by the PMO on Friday also described the terms of the Working Group (TORS).

The committee will guide and oversee the working group at US mutual rates. Deliberately approve the recommendations submitted by the Working Group. Talk with us as a major trading partner like and when needed. Regular about the premiere related to progress/measures. Anything else considered appropriate by the committee chair.

The 12 -member committee can also appoint any additional members on the basis of need. “The Ministry of Commerce will inform the Division Working Group and the Secretary will provide assistance,” he added.

Prices impact Pakistan

The move has practically changed Pakistan’s trade status under the general system’s priorities (GSP), which has offered less duties (usually 4-5 %) on some goods.

The United States is Pakistan’s largest country export market, worth about $ 6 billion annually, mainly textile.

Some equipment such as copper, pharmaceutical, semiconductor, wood, gold and energy are exempted from mutual rates, as according to the White House Fact Sheet, though they may face 10 % baseline unless it is otherwise explained.

However, the new bilateral taxes set by the US President’s order is 32 % of the current tariff on artificial costumes, such as any other duties, fees, taxes, expenditures, or charges applied to some subjects, the new tariff contains 61 % (32+29), prepared for a premiere.

However, Shahid Sattar, secretary general of all Pakistan Textile Mills Association (APTMA), said that Pakistan’s “minor impact” would have on exports, as regional economies face more taxes from Pakistan.

He highlighted that Bangladesh faces a 37 % baseline tariff plus 37 % mutual tariff, Sri Lanka 44 % plus 10 %, Vietnam 40 % plus 10 % baseline tariff, and China 34 % plus 10 % baseline tariff.

However, Washington says that if any country reduces revenue on US products, it will further reduce the duties on the country’s products. He advised that Pakistan should reduce the revenue on US products. He said the textile industry was importing cotton from the United States on zero duty.

The article developed by the Ministry of Commerce states that the increase in tariffs significantly increases the cost of Pakistani goods in the United States, which could potentially reduce export competition, especially in textile, which is a large part of its $ 6 billion in annual exports to the United States.

This may reduce employment in exporting industries, a wider trade deficit, and domestic prices in consumer prices will be domestic if Pakistan’s retaliation or trade will change anywhere else.

Although some analysts suggest that less global commodity prices can meet import costs for Pakistan than trade barriers, its immediate impact on exports from the United States is likely to be negative, which makes the market importance (19 % of Pakistan’s total exports in the first half of fiscal year 25).

This policy is in line with Trump’s wider strategy to reduce US trade deficit ($ 918.4 billion in 2024) and promote domestic manufacturing, though Pakistan’s trade additional US ($ 3 billion in 2024) is relatively smaller than giants like China.

The exact impact depends on Pakistan’s reaction, potential negotiations and can send exports to other markets. For now, 39 % of the total tariff indicates a rapid increase from the first privileged rates, which reflects the administration’s aggressive stance on bilateral relations.

Under the latest scenario, Pakistan will cost more than 46 % of Vietnam, 49 % from Indonesia, 49 % from Cambodia, 54 % from China, and 37 % from Bangladesh. However, Pakistan will face 26 % compared to India, 10 % from Turkey and Jordan, Egypt and Central America, 23 %.

This means that Pakistan may still be competitive against the higher tariff hit countries, but it can fight against the lower tariff markets like India and Turkey.

This new tariff is not applied to the goods that have more than 20 % of the US material. Pakistani businessmen still have an option for the industry to use us more and get immunity.