The president of the United States, Donald Trump, has introduced tariffs on the exports of dozens of commercial partners, including a 19 percent tariff on Pakistani goods, reviewed from the previous 29pc, one day after the two countries end a commercial agreement.
Late on Wednesday, a Pakistani delegation led by Finance Minister Muhammad Aurengzeb in Washington, DC, concluded a commercial agreement with the United States, which is expected to reduce tariffs, although no figure was announced. Trump also said that Washington would help Islamabad develop “massive oil deposits.”
According to an executive order that details the rates, it was announced that Pakistan will face a 19 percent rate as the Trump rate deadline comes to an end on August 1 (today).
While the Pakistan Stock Exchange (PSX) fell by up to 433 points today, he soon recovered his bullish impulse.
The KSE-100 reference index increased by 120.07 points (0.09pc) to reach 139,510.49 points at 11:34 AM, from the previous closure of 139,390.42 points.
Having witnessed a strong sales pressure on Tuesday due to corporate profits and political noise, the PSX had recovered above the 139,000 brands yesterday, promoted by the commercial agreement with the United States.
Pointing out that the United States was the largest market for textiles in Pakistan, CNN He declared that the Tarifa announcement is expected to drive the country’s textile sector, which is responsible for about 60 percent of the country’s total exports.
Pakistan has emerged with the second lowest rate in any country in southern Asia. Afghanistan was beaten with a 15PC tax, Bangladesh, Sri Lanka and Vietnam with 20pc and India with 25PC.
CNN He pointed out: there is also locally satisfaction that the Pakistan tariff rate is much lower than that of neighboring and archival India. The fears in Islamabad with which India was trying to isolate Pakistan financially has been a bit tempered by the rate of 25 percent rate with which the Trump administration reached the new Delhi. “
‘Does not align enough’
Trump established rates that include a 35 percent duty in many goods in Canada, 50pc for Brazil, 25 percent for India, 20pc for Taiwan and 39pc for Switzerland, according to a presidential executive order.
The order listed the highest import tax rates of 10 to 41pc from seven days for 69 commercial partners as the deadline of 12:01 am EDT was approaching (9:01 am PKT).
Some of them had reached rates reduction agreements; Others did not have the opportunity to negotiate with their administration. Trump included an exception for some products sent next week.
The assets of all other countries that do not appear on the list would be subject to an import tax of 10 % of the United States. Trump had previously said that the rate could be higher.
The administration also mocked that more commercial agreements were in process, since it seeks to close commercial deficits and increase national factories.
According to the Executive Order, if a commercial partner does not take “appropriate measures” to address rates or reprisals against the United States, the Secretary of Commerce Howard Lutnick and trade representative Jamieson Greer, in coordination with the high appropriate officials, will recommend additional measures.
Facing a deadline for Friday of its creation, the Republican President has taken advantage of the emergency powers, pressed foreign leaders and advanced with commercial policies that caused a market sale when announced for the first time in April.
This time, the markets had a more off reaction. Capital shares and futures fell modestly on Friday morning quoting in Asia.
Trump’s order said that some commercial partners, “despite having involved in negotiations, have offered terms that, in my opinion, do not sufficiently address imbalances in our commercial relationship or have not been able to align enough with the United States on matters of economic and national security.”
Other details are still coming, even in the “rules of origin” that will determine which products could face even higher rates.
Trump also said: “We have made some offers today that are excellent agreements for the country,” and an American official later told reporters that they were still to be announced.
Canada, Mexico
Trump issued a separate order for Canada that increases the rate of Canadian goods subject to rates related to 35pc fentanyl, from 25 percent before, saying that Canada had “could not cooperate” when stopping the flows of illicit narcotics in the United States.
The highest tariffs on Canadian goods contrasted strongly with Trump’s decision to grant Mexico a 90 -day breath of higher rates of 30 percent in many goods to provide more time to negotiate a broader commercial pact.
Trump complained to journalists before Canada “had been very poorly directed.”
Canadian Prime Minister Mark Carney said he was disappointed by Trump’s decision.
“While we will continue negotiating with the United States about our commercial relationship, the Canadian government is focused on what we can control: build Fuerte Canada,” said Carney in a publication about X.
The duties and rates of the United States will greatly affect wood, steel, aluminum and cars, he added, promising actions to protect Canadian jobs, buy Canadian products, invest in industrial competitiveness and diversify export markets.
The extension of Mexico avoids a 30 percent tariff on most Mexican non-automotive goods that comply with the United States-Mexico-Canada trade agreement and arrived after a Thursday morning call between Trump and Mexican president Claudia Sheinbaum.
“We avoid the increase in the announced rate for tomorrow,” Sheinbaum wrote in X, and added that Trump’s call was “very good.”
Around 85PC of American imports in Mexico comply with the rules of origin described in the USMCA, protecting them from 25 percent tariffs related to fentanyl, according to the Ministry of Economy of Mexico.
Trump said that the United States would continue to impose a 50 percent tariff on Mexican steel, aluminum and copper and a 25PC tariff on Mexican cars and goods that do not comply with USMCAs subject to tariffs related to the United States fentanyl crisis.
“In addition, Mexico has agreed to immediately end its non -tariff commercial barriers, of which there were many,” Trump said in a real social position, without providing details.
Discord of India
India’s assets seemed to go to a rate of 25 percent after the conversations stuck on access to the agricultural sector of India, which attracted a threat of higher Trump speed that also included a sanction not specified by the purchases of Russian oil from India.
Although negotiations with India continued, New Delhi promised to protect the intensive agricultural sector from the country’s work, and the threat of tallest Trump rates caused the outrage of the opposition party and a depression in the rupee.
Trump implementation of higher import taxes on Friday is produced in the midst of more evidence that they have begun to increase the prices of consumer goods.
The data of the Department of Commerce published on Thursday showed that the prices of home furniture and durable domestic equipment increased 1.3 percent in June, the highest gain since March 2022. Recreational prices and vehicle prices were fired to 0.9 percent, the largest amount since February 2024. The prices for clothing and steps increased 0.4pc.
Difficult questions of the judges
Trump arrived at Brazil’s exports on Wednesday with a 50 percent steep tariff while intensifying his fight with the largest economy in Latin America for his prosecution of his friend and former president Jair Bolsonaro, but softened the blow, excluding sectors such as airplanes, energy and orange juice of the heaviest levia.
The period prior to the deadline of Trump tariffs took place as the judges of the Court of Federal Appeals sharply questioned the use of Trump of a Law of Radical Emergency Powers to justify their radical tariffs of up to 50 percent in almost all commercial partners.
Trump invoked the International Law of Emergency Economic Powers of 1977 to declare an emergency about the growing commercial deficit of the United States and impose its “reciprocal” tariffs and an emergency of separate fentanyl.
The International Trade Court ruled in May that the actions exceeded its executive authority, and the questions of the judges during the oral arguments before the United States Court of Appeals for the Federal Circuit in Washington indicated more skepticism.
Meanwhile, China faces a deadline of August 12 to reach a durable tariff agreement with the Trump administration, after Beijing and Washington reached preliminary agreements in May and June to end Tit-For-Tat tariffs and a cut of rare land minerals.
An American official told reporters that they are advancing towards an agreement.
