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In a major trade move, U.S. has slashed import tariffs on Pakistani goods from 29% to 19%, following a strategic energy agreement between the two countries.
The deal signed allows the U.S. to ship crude oil to Pakistan and jointly develop the country’s massive untapped oil reserves – making a significant turn in U.S. Pakistan relations.
Energy deal sparks Tariff Concession
The tariff cut follows a landmark energy deal, where Pakistan agreed to purchase U.S. oil and allows American firms to assist in Oil reserve development.
Donald Trump, leading the U.S. trade strategy in 2025, emphasized the importance of this partnership, hinting that Pakistan could export oil to India in future.
Tariff cuts for Pakistan, Hike for India
- Under a new executive order, the U.S. revised import Tariffs on 69 countries, with rates now ranging from 10% to 41% also saw high duties
- India in contrast, continues to face a 25% tariff, among the highest rates imposed.
- Other countries like Cannada (35%) and Syria (41%) also saw high duties.
- The tariff cut gives Pakistan a competitive edge in the south Asian trade Sphere and is seen as a reward for deepening its energy ties with Washington.