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How U.S.–Pakistan Trade Talks Could Lift Tariffs and Boost Exports

Written by Saliha Aziz | Jun 26, 2025 11:59:01 AM

In the world of global trade, moments of quiet diplomacy can spark economic shifts with generational consequences. Right now, Pakistan and the United States are deep in discussions that could rewrite the rules of trade and unlock new economic momentum for Pakistan.

At the heart of it is one number: 29%. That’s the tariff rate currently applied to Pakistani exports entering the U.S., one of the country’s largest trading partners. But that may soon change.

 

A Critical Shift in Trade Dynamics

As first reported by Reuters on June 25th, Pakistan and the U.S. are nearing the conclusion of high-level trade talks. Spearheaded by Pakistan’s Finance Minister and the U.S. Commerce Secretary, the negotiations are aimed at easing the heavy tariff burden and clearing the way for a stronger bilateral trade partnership.

What triggered this? In 2024, Pakistan posted a $3 billion trade surplus with the United States. That surplus flagged Pakistan under U.S. trade policy, prompting a steeper tariff rate.

To rebalance the scales, Pakistan is putting forward serious value. The country has signalled its willingness to:

  • Import more American goods, including energy supplies.

  • Open investment channels in mining and strategic sectors.

  • Support U.S. participation in key infrastructure projects like Reko Diq, a $7 billion copper-gold development already under U.S. investor review.

 

The Bigger Picture: Why Zero Tariffs Matter

To understand what Pakistan stands to gain, it helps to look at what zero-tariff trade can actually do, and for that, we turn to two powerful examples.

As reported by Statista in early 2025, the U.S. historically maintained one of the lowest average tariff rates in the world, just 1.5%. Compare that to countries like Cameroon and Equatorial Guinea, which impose tariffs of 18% or higher, and you begin to see the value of access to the U.S. market with reduced or zero duties.

In fact, before recent policy changes, the U.S. and EU led the charge in creating freer trade zones that encouraged exports, lowered prices for consumers, and increased investor confidence. Access to those economies without punitive tariffs is not just helpful, it’s transformative.

A strong example of zero-tariff trade in action is the agreement signed between the UK and the EU in 2020. According to the Confederation of British Industry (CBI), it allowed goods to move freely without tariffs or quotas. While companies still had to manage paperwork and meet origin rules, the deal helped avoid major disruptions, which was a clear win for exporters and importers alike.

 

Why This Moment Feels Different

This isn’t just about policy. It’s about Pakistan claiming a more confident role in global trade. By offering reciprocity and opening high-growth sectors to international partners, the country is moving from passive exporter to proactive dealmaker.

In a world where protectionism is rising and countries are racing to secure supply chains, securing zero-tariff access to the U.S. is more than smart. It’s strategic.

If done right, it could:

  • Supercharge Pakistan’s export-led industries.

  • Unlock billions in trade and investment.

  • Establish Pakistan as a reliable long-term partner in global commerce.

 

Looking Ahead: A Moment for Confidence

At One Homes, we believe economic shifts like this aren’t just policy events; they shape the landscape we build in.

As a developer created for overseas Pakistanis, we’ve always championed long-term value and future-ready investment. Pakistan’s pivot towards deeper trade relationships reflects the same mindset: one of confidence, openness, and global ambition.

Whether through diplomacy or design, the direction is clear: Pakistan is stepping into its next chapter. And we’re proud to be building homes that reflect exactly that.