Islamabad launches negotiations for a reciprocal tariff deal
US President Donald Trump announced that Pakistani officials will visit the United States next week to discuss a potential trade agreement, as Pakistan looks to secure better tariff terms for its exports to the world’s largest economy.
Facing a potential 29% tariff on its exports to the US—triggered by a $3 billion trade surplus and Washington’s recent sweeping tariffs on many countries—Pakistan formally started discussions on a reciprocal tariff deal. This move follows Washington’s growing interest in deepening economic ties with South Asia.
According to an advisor to Pakistan’s finance minister, Finance Minister Muhammad Aurangzeb and US Trade Representative Ambassador Jamieson Greer launched these negotiations during a phone conversation on Thursday. The update was shared on X (formerly Twitter).
Speaking to journalists, President Trump confirmed the upcoming visit:
“Pakistani representatives are coming next week. We’re close to a deal with India. I wouldn’t be interested in deals with either if they’re going to be at war with each other.”
Earlier in the month, Islamabad proposed a bilateral trade deal offering zero tariffs on select goods.
“Pakistan is proposing a bilateral agreement with zero tariffs on mutually beneficial tariff lines, aiming to expand trade across various sectors,” sources.
This proposal followed President Trump’s mediation of a ceasefire between Pakistan and India after a series of military escalations. Trump credited himself with preventing a catastrophic war between the two nuclear-armed countries, claiming it could have resulted in millions of deaths.
In parallel, a high-level Pakistani political delegation led by PPP Chairman and former Foreign Minister Bilawal Bhutto Zardari is scheduled to arrive in New York on June 2. The group plans to present Pakistan’s perspective on recent military tensions with India, particularly after the Pahalgam attack.
The delegation includes PPP Senator Sherry Rehman, Federal Minister Musadik Malik, senior PML-N leader Khurram Dastgir Khan, former foreign minister Hina Rabbani Khar, and ex-foreign secretaries Jalil Abbas Jilani and Tehmina Janjua. During their two-day visit, they will meet with United Nations officials and engage with international media.
