The 29% tariff imposed by US President Donald Trump on Pakistani imports has the potential to seriously damage Pakistan’s economy by lowering exports, raising living expenses, and eliminating jobs, especially in vital industries like leather goods, textiles, and medical instruments.
What’s Life Like Under Trump’s 29% Tariff? Pakistanis are worried that US President Donald Trump’s decision to slap a 29% tariff on Pakistani imports may cause economic disruption in their nation. The decision, which was motivated by the need for more equitable trade policies, will have an impact on important sectors that contribute significantly to Pakistan’s export earnings, including sports equipment, leather goods, surgical instruments, and textiles. Exports are predicted to fall as the cost of these commodities rises for American consumers, which could have detrimental economic effects on Pakistanis.
By declaring baseline tariffs of 10% on all imports, greater levies on the US’s major trading partners, and a staggering 29% tariff on Pakistan, it appears that US President Donald Trump has opted to intensify the trade war. In case you were unaware, tariffs are levied by one nation on commodities that are imported from another. Trump’s decision to impose a 10% tariff on the majority of products coming into the US has exacerbated the global trade war and raised the possibility of adverse economic effects.
The Textile Industry Is Hit the Hardest
The hardest hit would be Pakistan’s textile industry, which makes up over half of its exports. Price increases for home goods like towels, bed linens, and ready-made clothing will reduce their competitiveness in the US market. Orders from major manufacturers like Bonanza Satrangi, Interloop, and Gul Ahmed are likely to decline.
Closing textile factories, widespread layoffs, and increased unemployment for millions of textile industry workers are all possible outcomes of this collapse. These layoffs will result in a lower standard of living for many Pakistanis in addition to a loss of income.
Sports Products and Surgical Instruments in Peril
Lower orders from the US will result from increased expenses for Sialkot’s surgical equipment industry, which is a major global supplier. Large companies like Nasco Surgical and Surgical Instruments (Pvt) Ltd may lose business to nations with cheaper tariffs, which would affect employment and result in the loss of trained staff.
Competition from China and India will undoubtedly hurt Pakistan’s sports goods sector, which manufactures cricket and football equipment. This implies that thousands of Sialkot factory workers could lose their employment, which would put already precarious families in a precarious financial situation.
Additionally Affected Were Leather, Agriculture, and Snack Exports
There will probably be a drop in sales as a result of Pakistani leather goods producers, such as Bata and Servis Shoes, being unable to compete with cheaper imports from Bangladesh, India, and China. In a similar vein, the US will have less demand for Pakistani agricultural products including rice, mangoes, and other fruits, which would further diminish Pakistani farmers’ earnings.
The snack sector, which is represented by companies like Hilal, Kolson, and Kurkure, will also be impacted because their goods become less appealing to US consumers when costs rise. Consequently, the livelihoods of Pakistani residents in a variety of sectors will be directly impacted.
The economic fallout from these tariffs will go beyond the export sector. A decline in exports means that Pakistan’s trade balance will worsen, leading to lower foreign currency inflows and potential depreciation of the Pakistani rupee. As the rupee weakens, everyday items like food, gas, water and electricity could become more expensive that will lead to a higher cost of living for ordinary Pakistani citizens. Moreover, with unemployment rates rising and job security weakening in Pakistan, many families will struggle to meet their basic life needs. Pakistan’s already vulnerable population, including those living below the poverty line will likely feel the worst impact of these changes.
