U.S. President Donald Trump has confirmed that a high-level delegation from Pakistan is scheduled to arrive in the United States next week for critical trade negotiations. These discussions come as Islamabad seeks to resolve a tariff dispute with Washington, which has put Pakistan at risk of facing up to 29% tariffs on its exports. Pakistan’s trade surplus of $3 billion with the U.S. has brought it under scrutiny due to new American tariff measures announced last month. These global tariffs, intended to rebalance trade, led the United States to temporarily suspend enforcement for 90 days to allow for diplomatic dialogue. In response, Prime Minister Shehbaz Sharif convened a high-level review meeting in Islamabad on April 9, which resulted in the decision to send a delegation comprising government officials, prominent business figures, and leading exporters to the U.S. The mission aims to improve bilateral trade relations and identify a path to mutual economic benefit.
Trump: No Deals if War Erupts Between India and Pakistan
Speaking to reporters at Joint Base Andrews, Trump linked future trade relations to regional peace, stating: “I would have no interest in making a deal with either Pakistan or India if they were to engage in war with each other.” His remarks follow the recent escalation between the two nuclear-armed neighbors, who exchanged artillery, drones, and fighter jet strikes during four days of the most intense fighting seen in decades.
Concurrent Progress on Trade with India
President Trump also mentioned that the U.S. is nearing a trade agreement with India, with Indian Trade Minister Piyush Goyal having recently visited Washington to advance negotiations. Both sides are aiming to finalize an interim deal by early July. India, too, faces a 26% tariff on its exports to the U.S. Reuters reports that as part of the ongoing talks, India may open up contracts worth over $50 billion—primarily federal procurement—to American firms, presenting a significant opportunity for U.S. companies.
According to official sources, Pakistan has proposed a zero-tariff bilateral trade agreement covering selected tariff lines that reflect mutual interest. This offer is designed to broaden trade channels across multiple sectors and present the U.S. with a compelling alternative in South Asia.
Initial Round of Pakistan-U.S. Trade Talks Commences
Pakistan’s Finance Minister Muhammad Aurangzeb and U.S. Trade Representative Jamieson Greer held an initial discussion via telephone on May 30. Finance Ministry Advisor Khurram Schehzad described the conversation as “constructive,” adding that both sides agreed to initiate technical-level negotiations in the coming weeks. “The two sides expressed confidence in advancing the negotiations for a successful conclusion at the earliest,” Schehzad posted on X (formerly Twitter).
Mining and Investment Incentives for U.S. Firms
Commerce Minister Jam Kamal revealed that Pakistan is preparing to offer investment concessions to American firms, particularly in the mining sector. These incentives will include lease grants and joint ventures with local companies, especially in the mineral-rich province of Balochistan. “There is untapped potential for U.S. companies in Pakistan, from mining machinery to hydrocarbon ventures,” Kamal told Reuters. Additionally, Pakistan is looking to increase imports from the United States, particularly in cotton and edible oils, to help alleviate domestic shortages. In a significant departure from previous U.S. administrations, which largely focused on India, the Trump administration now appears to be recognizing Pakistan as a viable trade partner. “The previous US administration focused more on India, but Pakistan is now being recognised as a serious trade partner,” Kamal noted. He also stated that Pakistan will gradually lower tariffs in the upcoming federal budget to foster foreign investment and enhance competitiveness. The U.S. has yet to specify priority sectors or trade barriers, but Islamabad remains optimistic about reaching a mutually beneficial agreement.
