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New US trade policy grants Pakistan concessions as compared to India, Bangladesh

US imposes 20% tariff on Bangladesh
Updated 02 Aug, 2025 08:27am
Photo via Reuters
Photo via Reuters

The new US trade policy in South Asia has taken a relatively lenient approach towards Pakistan.

Among the three major countries in South Asia, Pakistan has been given the most concessions. Meanwhile, India and Bangladesh have been severely restricted. Pakistan faces relatively low tariffs. This decision reflects the strategic political balance in the region, trade interests and recent diplomatic developments.

According to the list, the White House has released a list of import tariffs on various countries under the new trade policy. The Trump administration has imposed a 19% retaliatory tariff on Pakistani products. In contrast, a 25% tariff has been imposed on India and a 20% tariff on Bangladesh.

Other countries are subjected to same 20% tariff has been imposed like Bangladesh , it include Sri Lanka, Vietnam and Taiwan. Among the three major countries in South Asia, Pakistan has been given the most concessions.

Countries like Afghanistan, Israel and Turkey have been imposed 15% tariffs, 15% each. Other countries include Angola, Bolivia, Botswana, Cameroon, Chad, Costa Rica, Ivory Coast, Congo, Ecuador, Guinea, Fiji, Ghana, Guyana, Iceland, Israel, Japan, Jordan, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Nauru, New Zealand, Nigeria, North Macedonia, Norway, Papua New Guinea, South Korea, Trinidad and Tobago, Uganda, Vanuatu, Venezuela, Zambia, Zimbabwe.

Similarly, a 30 percent tariff has been imposed on South Africa, a 39 percent tariff on Switzerland, and a 40 percent tariff on Myanmar. An 18 percent tariff has been imposed on Nicaragua. The tariff on Canada has been increased from 25 percent to 35 percent, while a 10 percent tariff has been imposed on the United Kingdom and Brazil. Myanmar and Laos have been announced to impose 40 percent tariffs, while Syria has the highest, 41 percent.

According to the White House, the new tariffs took effect immediately. President Trump has given Mexico a 90-day deadline to impose tariffs. He says that if a trade agreement is not reached with Mexico, the current tariff rate will be extended.

According to analysts, the US giving Pakistan lower tariffs than India as a testament to the effectiveness of Pakistan’s foreign policy. Experts emphasised this concession should be used effectively for economic improvement.

This development is considered the result of high-level diplomatic contacts, including Field Marshal Syed Asim Munir’s meeting with US President Trump, talks between Prime Minister Shehbaz Sharif and US Secretary of State Marco Rubio, important meetings of Deputy Prime Minister Ishaq Dar and contact of Finance Minister Muhammad Aurangzeb with the US Secretary of Commerce.

Notably, a trade agreement between Pakistan and the United States was signed recently, as announced by President Trump on Twitter.

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