U.S. President Donald Trump has reignited a global trade war by imposing steep tariffs—up to 145% on Chinese goods and a general 10% on imports from most countries. China responded with 125% tariffs on U.S. products. Trump argues these measures will protect American jobs and manufacturing, but global markets have been shaken, and prices are expected to rise.
What Are Tariffs?
Tariffs are taxes on imported goods, often a percentage of the item’s value. A 10% tariff adds $1 to a $10 product. Higher tariffs, like Trump’s 145% on some Chinese goods, dramatically raise costs, which are often passed on to consumers.
Why Is Trump Using Them?
Trump says tariffs:
- Encourage buying American
- Raise government revenue
- Reduce trade deficits
He believes the U.S. has been exploited by unfair trade and is using tariffs to level the playing field. His approach has drawn criticism both domestically and internationally.
Key Tariff Targets
- China: Tariffs increased from 10% to up to 145%
- Mexico & Canada: 25% on exports; some exemptions apply
- Steel & Aluminum: 25% tariff
- Cars & Parts: 25% duty begins in stages
- Electronics: Some devices temporarily exempt
Pakistan’s Tariff Trouble
On April 2, 2025, Trump imposed a 29% tariff on Pakistani imports under his “Liberation Day” trade policy. This follows Pakistan’s 58% tariff on U.S. goods and affects a key U.S. trading partner. Pakistan exported $5.1 billion to the U.S. in 2024, mainly textiles—an industry now expected to lose $1–2 billion due to these new tariffs.
The move could deepen Pakistan’s economic woes, increasing job losses, trade deficits, and currency pressure. Retaliation is unlikely due to Pakistan’s limited leverage, but diplomatic pushback and appeals for exemptions are expected.
Bigger Picture: A Global Trade Shift
Around 60 countries are now subject to Trump’s tariffs, including China and the EU. The global trade environment is shifting, with traditional alliances strained. For Pakistan, this may mean leaning more on China’s Belt and Road Initiative and exploring new markets to reduce dependency on the U.S.
What’s Next?
The tariffs present both risk and opportunity. For Pakistan, success now depends on quick economic adaptation, market diversification, and stronger diplomacy. For Trump, the ultimate test will be whether this protectionist push delivers real gains—or backfires.
