Pakistan and the United States are reportedly nearing the completion of a major trade agreement as the deadline for the implementation of President Donald Trump's "Liberation Day" tariffs approaches on August 1. Pakistani Foreign Minister Ishaq Dar, in a speech at the Atlantic Council think tank, indicated that the discussions with the U.S. government had progressed significantly.
Meetings with Secretary of State Marco Rubio have taken place both in Washington and through virtual channels to iron out the details of the deal. Dar expressed optimism about the negotiations, suggesting that an agreement could be reached within days. The "Liberation Day" tariffs, announced as part of President Trump's trade policy overhaul during his second term, have prompted several countries to engage in negotiations to avoid or mitigate the new tariffs.
The baseline tariff rate set by President Trump is 10% on almost all imports into the U.S., with specific categories such as automobiles, aluminum, and steel subjected to a higher rate of 25%. Similar tariffs apply to certain imports from Canada and Mexico that fall outside the United States-Mexico-Canada Agreement (USMCA).
Trade between the U.S. and Pakistan reached approximately $7.3 billion last year, and both nations have confirmed that trade discussions are ongoing, though no exact timeline for a conclusion has been provided. The State Department has yet to comment on the current status of the talks.
Earlier this year, tensions between India and Pakistan escalated following a terrorist attack in the Pahalgam region near India-administered Jammu and Kashmir. President Trump has been credited with helping to mediate the conflict, resulting in a ceasefire announced in May. Pakistan has even considered nominating President Trump for the Nobel Peace Prize for his diplomatic efforts.
As the trade talks approach their end and diplomatic tensions subside, the Pakistani government seems hopeful about the prospect of strengthening ties with the United States. This potential agreement could mark a significant milestone in U.S.-Pakistan relations, with implications for regional stability and economic growth.
