smartcybers786@gmail.com 
In this picture taken on July 20, 2023, a worker operates a machine preparing fabric at a textile mill in Lahore. — AFP
#Trumps #tariffs #reshape #global #textile #trade
LAHORE: Former US President Donald Trump is expected to reduce global trade at least in a short period of time from the impact of prices. Trade wars often mobilize revenge rates, which increases the costs of business and consumer, while disrupting global supply chains.
The latest US tariff measures have imposed various rates on textile exports from several Asian and South Asian countries. The US is as follows: Vietnam (46 %), Thailand (36 %), Bangladesh (37 %), Sri Lanka (44 %), India (26 %) and Pakistan (29 %).
India’s textile exports to the United States face 26 % tariff, which is less than those imposed on its regional rivals, which potentially benefit Indian exporters in the US market. This could give Indian textiles more competitive prices than countries facing higher prices. Although India is affected by prices, it has not taken any special measures in retaliation. Delhi officials pointed out that 26 % tariffs on India are still lower than other Asian and South Asian rivals, which can provide “comparative advantage” to Indian exporters.
Pakistan could potentially benefit from the US tariff rise to other Asian textile exporters, but many factors will determine whether it can effectively benefit from this opportunity. With 29 % tariffs, Pakistan faces less duties than in Vietnam, Thailand, Bangladesh and Sri Lanka, making its textile relatively more attractive, which is seeking to transfer sources to US buyers from high burial countries.
Pakistan is already an important textile supplier for the United States, especially with domestic textiles such as bed sheet and towels as well as clothing. If Pakistan maintains the benefits of quality and cost, buyers can increase orders to cover more costs from other countries. Some US importers can reduce the orders of Vietnam, Thailand or Sri Lanka, and if its price competition improves, Pakistan may move to Pakistan. However, 26 % of India’s tariffs are still less than 29 % of Pakistan, which makes India a priority choice for buyers if it maintains performance. India’s diverse textile base and strong integration with global brands give it a competitive edge.
To take advantage of this opportunity, Pakistan must increase production, improve logistics and reduce lead hours. Supply chain disqualification can limit the ability to attract new orders. In addition, Pakistan imports a significant amount of cotton, which pose a risk of currency fluctuations and high costs of raw materials. To fully benefit this relative tariff benefits, Pakistan should strengthen trade relations with US buyers by offering long -term pricing deals to secure new orders. Improving production efficiency by investing in automation, energy efficient process and cost reduction will also be very important. Discussing trade agreements and searching for special tax relief measures, such as GSP+ benefits, can increase Pakistan’s status in the US market.
Due to lower taxes than most rivals, Pakistan has a window of opportunity. However, India still holds a strong position, and Pakistan’s ability to convert this advantage into a real growth depends on the supply chain and policy challenges. It is important to note that these taxes are part of the wider US trade initiatives affecting several sectors and countries, resulting in a significant change in global trade dynamics. It is likely that these developments will affect the landscape of textile exports to the United States, and will potentially change the shares of the market between the exporting countries.
Its actual effect depends on how the affected countries react – whether directly implement the competition, look for alternative commercial partners, or discuss new contracts. The uncertainty caused by tariff wars also affects business confidence, investment decisions and long -term trade relations. Once the Counter Tariff is announced, they will determine the extent to which US exports will decrease due to a decline in market access. It is not yet clear which businesses can change production to avoid revenue.
Historically, trade wars have not benefited any party in a long time. They reduce performance, distort comparative benefits and slow down economic activity.
