The new tariff regime unveiled by US President Donald Trump earlier this month could cost Pakistan's GDP $41 million, as its impact on the exports and imports was estimated at $394 million and $563 million, respectively, economic experts and government officials fear.
Donald Trump announced 29% additional duties on America's imports from Pakistan, when he jacked up the US tariffs on dozens of countries. However, in a dramatic announcement on Wednesday the president put a pause of 90 days on the new trade regime.
Concerns among exporters and importers as well as economic experts in Pakistan grew after the new US levies. Because of the US tariff hike, according to sources, Pakistan's GDP may face a loss of $41 million, while exports may face a loss of $394 million and imports $563 million.
"Last year, Pakistan's exports to US were worth $5.1 billion, while imports tallied to $1.2 billion, creating a trade surplus of 3.1 billion in favour of Pakistan," said a source. "However, under the new [US] policy, Pakistan's exports may decrease by 1.06% and imports by 0.95%," the source added.
Officials said that the implementation of the new US policy would definitely impact Pakistan's trade surplus. According to officials, the US determined the new tariffs based on its trade deficit, and not just on the percentage of customs duties.
"On this basis, heavy tariffs are being imposed on Pakistan and other countries, like China," the source said. "Textile is Pakist
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