U.S. President Donald Trump on Wednesday announced the imposition of “reciprocal” tariffs on products from various countries, including a 29% tariff on Pakistani goods.
In a speech at the White House Rose Garden, Trump defended his decision as necessary to correct longstanding trade imbalances and the “unfair” treatment of American products in foreign markets. Since assuming office in January, Trump has repeatedly voiced an intent to impose tariffs on countries that do the same on U.S. products. He has claimed the high tariffs are a form of subsidy for foreign economies, stressing the U.S. cannot continue to fund them and they should be self-reliant.
During his speech, the U.S. president explained that Pakistan charges a 58% tariff on American goods and the U.S. is now responding with a 29% tariff on Pakistani products. Experts warn this could have a significant impact on Pakistan’s exports, as the U.S. remains one of the country’s largest trading partners.
Bilateral trade between the U.S. and Pakistan was valued at $7.3 billion in 2024, with U.S. exports to Pakistan growing by 4.4% to $2.1 billion. At the same time, imports from Pakistan increased by 4.9%, totaling $5.1 billion.
Trump further announced reciprocal tariffs for 40 other countries, with rates ranging from 10% to 50%, prompting condemnations and threats of retaliation from various leaders. In a statement to CNN, U.S. Treasury chief Scott Bessent urged other nations against retaliation, stressing that this could trigger further escalation that would lead to dramatically higher prices for consumers globally.
Tariffs Imposed
- China 34%
- European Union 20%
- Vietnam 46%
- Taiwan 32%
- Japan 24%
- India 26%
- South Korea 25%
- Thailand 36%
- Switzerland 31%
- Indonesia 32%
- Malaysia 24%
- Cambodia 49%
- United Kingdom 10%
- South Africa 30%
- Brazil 10%
- Bangladesh 37%
- Singapore 10%
- Israel 17%
- Philippines 17%
- Chile 10%
- Australia 10%
- Pakistan 29%
- Turkey 10%
- Sri Lanka 44%
- Colombia 10%
- Peru 10%
- Nicaragua 18%
- Norway 15%
- Costa Rica 10%
- Jordan 20%
- Dominican Republic 10%
- United Arab Emirates 10%
- New Zealand 10%
- Argentina 10%
- Ecuador 10%
- Guatemala 10%
- Honduras 10%
- Madagascar 47%
- Myanmar 44%
- Tunisia 28%
- Kazakhstan 27%
- Serbia 37%
- Egypt 10%
- Saudi Arabia 10%
- El Salvador 10%
- Côte d’Ivoire 21%
- Laos 48%
- Botswana 37%
- Trinidad and Tobago 10%
- Morocco 10%
- Algeria 30%
- Oman 10%
- Uruguay 10%
- Bahamas 10%
- Lesotho 50%
- Ukraine 10%
- Bahrain 10%
- Qatar 10%
- Mauritius 40%
- Fiji 32%
- Iceland 10%
- Kenya 10%
- Liechtenstein 37%
- Guyana 38%
- Haiti 10%
- Bosnia and Herzegovina 35%
- Nigeria 14%
- Namibia 21%
- Brunei 24%
- Bolivia 10%
- Panama 10%
- Venezuela 15%
- North Macedonia 33%
- Ethiopia 10%
- Ghana 10%
Global reaction
In a statement, China—which Trump had previously imposed a 20% tariff on—urged the U.S. to cancel the latest levies or prepare for countermeasures. Tokyo, similarly, said it was considering all options to respond to the “extremely regrettable” duties.
European leaders also reacted with dismay, saying a trade war would hurt consumers and benefit neither side. “We will do everything we can to work towards an agreement with the United States, with the goal of avoiding a trade war that would inevitably weaken the West in favor of other global players,” said Italy Prime Minister Giorgia Meloni.
Overall, according to Fitch Ratings, the effective U.S. import tax rate has shot to 22% under Trump from just 2.5% in 2024. “That rate was last seen around 1910,” Olu Sonola said in a statement. “This is a game-changer, not only for the U.S. economy but for the global economy. Many countries will likely end up in a recession. You can throw most forecasts out the door if this tariff rate stays on for an extended period of time,” he warned.
Other economists have similarly warned that these tariffs could slow the global economy, raise the risk of recession, and increase living costs for the average U.S. family by thousands of dollars.
The tariffs do not apply to certain goods, including copper, pharmaceuticals, semiconductors, lumber, gold, energy and “certain minerals that are not available in the United States,” according to a White House statement.