The finance minister announced that the US and Pakistan would have a trade agreement by next week.
The finance minister of Pakistan announced that they would have a trade agreement by next week or so with the United States of America, which will be a deal-breaker for Pakistani exporters. It is worth stating that on 9th April, United States of America President Donald Trump announced they are applying tariffs on countries due to the United States having serious concerns about trade deficits. The US president also scolded many countries, including India and China, who have been accused of taking the United States trade policy for granted and abusing United States trade policy. Every country, even Israel, faced tariffs, and the US said if all countries want to reduce tariffs, then they must work with the US to come up with a trade deal that benefits the US as well. Moreover, at the moment, the US has made successful trade agreements with the UK first and then China, which had the most tariffs, up to 133%. It means that Chinese exports to the US will be 133% more expensive when they reach US soil.
However, Pakistan said that they would work with the US to work out a trade deal for Pakistan, as the US said that Pakistan posted a USD 3 billion surplus, and the US wants to correct it, as it is not a good thing to have a trade deficit, as it is impacting US citizens' lives as well as our manufacturing, which is idle. It is a fact that the US wants its manufacturing to be revived again and compete globally, and more importantly, compete with China. The US put 29% tariffs on Pakistani goods that were exported from Pakistan to the US. However, later on, the US president paused the tariffs till July 9th, and if the countries do not come up with a trade deal by then, they will be subjected to the tariffs that are announced by the United States.
