smartcybers786@gmail.com 
US President Donald Trump, March 13, 2023. — Reuters
#Trumps #trade #policies #global #shifts
LAHORE: Donald Trump’s recent policy changes-especially his aggressive trade stance, pressure on NATO, and the turning point in Russia-Ukraine conflict-both direct and indirectly for Pakistan to achieve direct and indirect results.
As of March 2025, the administration of US President Donald Trump has introduced policies that have stressed relations with European allies, especially in trade and defense. In February 2025, Trump announced 25 % of the taxes on imported goods from the European Union (EU), accusing the United States of prejudice. In response, the European Union has threatened to impose such stringent retaliation.
These policies can affect Pakistan in many ways. 25 % of Trump’s tariff on European Union goods can mobilize global trade instability, if economic growth in Europe slows down, the European Union can potentially affect Pakistan’s exports. The retaliation by the European Union can further reduce the overall demand for imports, which can indirectly affect Pakistan’s textile and manufacturing sectors.
In addition, if Trump restores tension with China, it can affect China’s foreign investment, including China -Pakistan Economic Transit (CPEC). A tough US stance on Chinese technology and investment can hinder Pakistan’s ability to attract more Chinese funds for infrastructure and energy projects.
Trump’s stance on Ukraine suggests that the United States can emphasize Russia’s settlement. If it resulted in sanctions on Russia, oil prices may be stable. However, if restrictions are maintained or accelerated, global energy prices may remain high, which promotes Pakistan’s import bill and promotes inflation.
The Trump administration has historically supported India, especially in trade and defense. Further reinforcing US India’s military and economic relations can raise Pakistan’s strategic concerns. The increase in US military aid to India can change regional balance, and Pakistan can be forced to increase its defense spending on economic development costs.
Strict visa policies for Muslims and South Asians under Trump can create difficulties for Pakistani workers and students in the United States. Any restriction on US remittances can negatively affect Pakistan’s foreign exchange reserves.
To navigate these challenges, Pakistan will have to accelerate efforts to diversify its export markets by focusing on Africa, ASEAN and the Middle East to reduce the dependence on Western economies. Strengthening trade relations with Turkey, Central Asia and Russia can provide alternative markets for Pakistani goodies. While maintaining strong ties with China, Pakistan should also attract investment from other Asian and Gulf countries to avoid much dependence on Beijing. Increasing the development of CPEC’s special economic zone (SEZS) can increase industrial productivity and promote exports.
To protect energy, Pakistan should find long-term agreements with the Gulf countries-including Qatar, the United Arab Emirates and Saudi Arabia-hedge against the fluctuations in oil prices. Investing in renewable energy projects can reduce dependence on imported foam fuel.
Diplomatically, Pakistan should engage with both the United States and China to prevent Washington from being fully align with New Delhi at the expenses of Islamabad. Strengthening regional partnerships with Turkey, Saudi Arabia and Iran can help Pakistan to take advantage of the strategic.
Homely, economic flexibility has been strengthened by implementing structural reforms to reduce the dependence on foreign debt and promote self -sufficient economy. Improving the ease of business is very important to attract foreign direct investment (FDI) from countries outside China.
Increasing this and exports of services can help Pakistan reduce dependence on traditional sectors like textile. Although Trump’s policies are in economic and strategic risks, he also offers new opportunities. The best process for Pakistan is in economic diversity, diplomatic balance, and strong regional trade partnerships. By reducing dependence on Western economies and increasing trade with Asia, Africa and the Middle East, Pakistan can reduce the risks and ensure economic stability in the uncertain global landscape.
During his first term (2017-2021), Trump’s ‘US First’ policies, trade wars (especially with China), and international agreements, introduced significant uncertainty in global trade. Although these policies led to obstacles, many economies have taken advantage of and even benefiting from the US -China tension and even benefited. Unfortunately, Pakistan was not among the beneficiaries.
