Pakistan has officially begun negotiations with the United States over the steep reciprocal tariffs imposed by former US President Donald Trump last month. The announcement was made by Khurram Schehzad, Adviser to Pakistan’s Finance Minister, who confirmed that initial talks took place on May 30, 2025.
Trump’s administration recently imposed a 29% reciprocal tariff on Pakistani imports—part of a broader global tariff strategy targeting over 185 countries. According to Trump, the move was in response to what he described as unfair trade practices, citing Pakistan’s 58% tariff rate on American goods.
The opening round of negotiations was held via teleconference between Pakistan’s Finance Minister Muhammad Aurangzeb and Jamieson Greer, the US Trade Representative. Both parties reportedly engaged in a constructive exchange of views and agreed to continue with more detailed technical-level discussions in the coming weeks.
“Both sides showed confidence in reaching a successful and timely resolution,” Schehzad stated in a post on social media platform X (formerly Twitter).
Background: Trump’s Tariff Offensive
The tariffs stem from a broader trade policy initiated by Trump in early April 2025, where he declared America’s trade deficit a national emergency. This led to a sweeping 10% tariff on all imports into the US, with even higher duties—like the 29% on Pakistan—levied against countries with which the US runs significant trade deficits.
While many of these country-specific tariffs were paused just a week after their announcement, the Trump administration maintained pressure on key trading partners. For instance, China saw a temporary reduction in tariffs starting May 12 as both nations entered negotiations to reach a longer-term trade deal. As part of that deal, the two countries agreed to mutually reduce tariffs for at least 90 days.
In a related development, a US trade court this week issued a ruling blocking Trump’s across-the-board tariffs from taking effect, stating the former president had exceeded his executive authority.
US Offers Cotton Imports as a Trade Sweetener
To ease tensions with Pakistan, the United States has reportedly offered to increase its cotton exports to the South Asian country as part of the negotiations. While no official details have been released, trade analysts see this as a goodwill gesture to keep talks on track.
The outcome of the Pakistan-US tariff talks will be closely watched by economists and international investors, as they could shape the trajectory of bilateral trade ties amid a volatile global economic landscape.
