The global trade landscape is shifting rapidly, triggered by aggressive US tariffs under President Trump. While countries rush to secure tariff exemptions, Pakistan finds itself in a critical position — not just vulnerable, but full of untapped opportunity.
The temporary 90-day pause in US reciprocal tariffs provides a narrow window. For Pakistan, whose exports to the US are heavily textile-based and valued at $5.4 billion, this pause reverts punitive duties to a flat 10%, down from 29%. However, this isn’t a pardon — it’s a chance to strategize.
Several competitors like Türkiye, the UAE, and Australia are already rolling out reforms and incentives to capitalize on shifting supply chains. Pakistan, in contrast, faces structural hurdles: industrial energy costs that are double those in China and triple those in India, outdated customs processes, and high input costs in key sectors like synthetic yarns.
Yet, Pakistan holds negotiating leverage. As the world’s top importer of US cotton, which it re-exports as finished apparel, Pakistan offers true value addition. This trade integration can support the case for favorable treatment. But delay could erode this position — if US cotton imports decline following tax reforms on local inputs, Pakistan may lose its edge.
Countries that move fastest will benefit most. India, often labeled a tariff-heavy economy, has cleverly avoided retaliation and secured major investments — including Apple shifting up to 50% of iPhone production to its Indian facilities.
Meanwhile, the US-China tariff war deepens, creating openings for alternative manufacturing hubs. Pakistan can be one — if it modernizes customs, reduces energy costs, and diversifies exports. Signs of opportunity are already there: the US has shown interest in Pakistan’s critical minerals, while gaps in the American leather and technical textile market are waiting to be filled.
Pakistan must act — fast. The realignment of global trade is more than a disruption. It’s a rare opportunity. With the right policy moves, Pakistan can move from reactive to strategic — and claim its place in the new global supply chain.
Source: Technical Textile Value Chain / Digpu NewsTex