US, Aug.01,2025: On July 31, 2025, President Trump issued an executive order titled “Further Modifying The Reciprocal Tariff Rates” affecting over 70 countries and the EU
Trump Pakistan tariff 19% – Why It Matters
Trump Pakistan tariff 19% stands out as one of the lowest among South Asian nations in President Donald Trump’s sweeping tariff reforms announced at the end of July 2025. This rate underscores a deliberate differentiation in U.S. trade strategy across the region.
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The Broader Tariff Wave
On July 31, 2025, President Trump issued an executive order titled “Further Modifying The Reciprocal Tariff Rates” affecting over 70 countries and the EU, with tariffs ranging from 10% baseline to as high as 41% for selected economies.
Canada immediately faced a steep jump to 35%, effective August 1, while most others will see the new rates on August 7. The policy is framed as a national emergency measure under IEEPA to rebalance trade deficits and curb illicit narcotics flows.
Tariff Levels for South Asian Neighbors
Country
New U.S. Tariff Rate
Notes
India
25%
Among the highest in region
Pakistan
19%
Trump Pakistan tariff 19% treated moderately
Bangladesh
20%
Due to recent bilateral discussions
Sri Lanka
20%
Same as Bangladesh
Specifically:
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Pakistan: 19%
India: 25% (unchanged or higher)
Bangladesh: 20% (reduced from previously higher levies)
Sri Lanka: 20%
This confirms that Trump Pakistan tariff 19% is the lowest in South Asia, ahead of Bangladesh and Sri Lanka, and well below India’s rate.
India, Pakistan, Bangladesh, Sri Lanka
India remains at 25%, reflecting the U.S. view of its trade surplus and noncompliance in recent deals.
Bangladesh sees relief with a drop to 20%, boosting its textile exports’ competitiveness—impacting Indian textile stocks that fell up to 7%
Sri Lanka also at 20%, part of the broader adjustment scheme.
Pakistan benefits from a notably low 19% tariff—a strategic relief likely following recent negotiations.
Canada and Global Reactions
Canada escalated from 25% to 35%, effective August 1—the only country to face immediate implementation.
Other nations like Switzerland (39%), Iraq (35%), Syria (41%), Myanmar (40%), and South Africa (30%) also face steep rates.
Countries still negotiating trade deals (e.g. UK, EU, Japan, South Korea) received temporary relief or exemptions.
Impacts on Trade and Stock Markets
Indian textile firms like Kitex, Pearl Global, KPR Mill saw a 7% drop as trade margin pressure mounts due to Bangladesh’s improved access under dropped tariffs.
Global markets responded with mild volatility, though buyers brace for increased inflation and supply chain disruption.
Economists warn of broader consumer cost increases and uncertain manufacturing gains from the policy shift.
Expert Commentary & Legal Challenges
Critics argue the use of the International Emergency Economic Powers Act to impose broad tariffs stretches constitutional bounds. A federal appeals court is reviewing the legal justification. Supporters maintain tariffs protect U.S. manufacturing and national security, citing anti-fentanyl and immigration enforcement motives.
What’s Next: Negotiations and Delays
Implementation: Most countries will see new tariffs take effect August 7, allowing systems to adjust.
Further deals: The U.S. continues negotiations with nations including Mexico, EU, UK, Japan, South Korea, and Taiwan for tariff reductions in exchange for concessions.
Special cases: Mexico secured a 90‑day reprieve, avoiding immediate hikes for compliant goods under USMCA.
External Resources
Full White House executive order text: Further Modifying The Reciprocal Tariff Rates
Reuters country-by-country tariff breakdown
Analysis on global responses: The Guardian and AP special coverage
Economic performance impact: Economic Times and Business Today commentaries
Trump Pakistan tariff 19% highlights a calculated approach within Trump’s sweeping tariff overhaul—it’s lower than India’s rate and offers comparatively favorable access for Pakistan. This adjusted tariff map reshapes global trade ties and signals differentiated treatment within South Asia.
Countries now navigate market shocks, inflation risks, and legal ambiguity—all while eyeing further bilateral deals that could alter future duties. Stay attentive as these measures roll out from August 7 and evolve through ongoing negotiations.
