Pakistan rejects US trade tariff as disproportionate, inconsistent with WTO principles

The United States recently imposed a unilateral 29 percent tariff on Pakistani exports, citing ‘reciprocity’ over Pakistan’s alleged 58 percent tariffs on US goods. Pakistan rejects this punitive measure as disproportionate, misrepresentative of its trade framework, and inconsistent with WTO principles. The move risks destabilizing Pakistan’s export-driven sectors, harming bilateral trade ties, and undermining the rules-based global trading system.  

Pakistan has firmly positioned itself in defense of its trade policies, asserting that its tariff structures align with its rights as a developing nation under global trade rules. The statement comes as US trade measures threaten to disrupt millions of livelihoods and provoke a ripple effect on consumers in both countries.

In a statement, the Pakistani government emphasized that its tariff policies are fully in line with World Trade Organization (WTO) rules. As a developing economy, Pakistan is entitled to certain trade protections to foster growth and economic stability, particularly for industries like textiles and agriculture that are vital to millions of livelihoods. Pakistan's leadership argued that the tariffs imposed by the United States jeopardize these protections, potentially leading to widespread job losses across key sectors.

Pakistan’s textile industry alone employs millions, many of whom could lose their jobs if the US tariffs continue to disrupt trade flows. The agricultural sector is also facing challenges as US measures put Pakistani exports, including fruits and vegetables, at risk. “The lives of countless workers are hanging in the balance,” said a spokesperson from the Ministry of Commerce. “We are committed to protecting these jobs, which are vital not just to Pakistan’s economy but to families across the country”.

The impact of these trade actions is not confined to Pakistan alone. US households are also set to feel the pinch, with higher prices expected for everyday goods, including textiles, leather products, and more. “The US consumer will bear the brunt of these tariffs, paying more for goods that are an integral part of their daily lives,” said an economist from Islamabad. “It is not just Pakistan's economy at stake; American consumers will feel the effects too”.

As the trade dispute deepens, Pakistan is urging the US to engage in bilateral dialogue to resolve the issues amicably. Diplomatic sources indicate that the ongoing trade actions risk damaging decades of strategic cooperation between the two nations. Pakistan maintains that ‘dialogue, not duties,’ is the path forward. “Trade wars only create division, while cooperation fosters mutual benefit,” a senior official stated.

Pakistan’s broader trade strategy is grounded in several key objectives:

Defend Economic Sovereignty:

Protect vulnerable industries and jobs through WTO-compliant measures.

Uphold Multilateralism:

Challenge unilateral tariffs via the WTO’s dispute mechanisms, ensuring that global trade practices are fair and equitable.

Diversify Trade Partnerships:

Pakistan aims to reduce its reliance on any single market by strengthening its economic ties with Asia, the European Union, and the MENA region.

Engage Diplomatically:

Pakistan seeks to address trade imbalances through dialogue rather than conflict, pushing for constructive negotiations.

Counter Misinformation:

Clear up misconceptions about Pakistan's tariff structure, emphasizing that it is in line with international trade norms and the developmental needs of the country.

A Call for Fair Competition

In the face of growing tensions, Pakistan continues to advocate for trade policies that reflect fairness, transparency, and respect for each nation’s developmental needs. “We stand by fair trade,” a government spokesperson stated. “Unilateral tariffs harm global economic stability and undermine the principles of the WTO. Protectionism is not the solution—it is the problem”.

The message is clear: “The international community must rally against unilateralism to protect the integrity of global trade.” Pakistan remains steadfast in its commitment to upholding WTO standards, ensuring that trade policies reflect mutual respect and shared economic goals.

As Pakistan faces the challenges posed by these tariffs, the country is focused on the long-term goal of balanced trade practices with the US and other international partners. The government is committed to resolving the current issues through cooperative, not confrontational, means.

“Pakistan’s trade policies are transparent and fully compliant with international obligations,” said a senior government official. ‘Our approach is rooted in fairness, and we remain committed to constructive negotiations. Upholding the standards of the WTO ensures fairness for all nations, big and small. Cooperation, not confrontation, is the key to resolving these disputes effectively’.

As the situation continues to unfold, Pakistan urges the global community to prioritize diplomacy, equity, and sustainable trade practices over punitive measures. Only through dialogue and mutual understanding can the world ensure that trade benefits all, rather than creating further divisions and instability.