Is a 50% US Tariff on India a Golden Opportunity for Pakistan?
The Pakistani and Indian communities are present in large numbers in the United States. The food and clothing needs of these communities create business opportunities for South Asian exporters.
Pickles, spices, vegetables, basmati rice, dry fruits, textile products, sports goods, pharmaceutical raw materials, precious stones, gold and silver jewelry, tea leaves, and petrochemical products are among the items South Asian exporters sell in the U.S.
Difference Between Indian and Pakistani Exports to the U.S.
In 2024, India exported products worth $87 billion to the U.S., while Pakistan exported only $5 billion worth of goods during the same period.
Recently, U.S. President Trump first imposed a 25% tariff on India and later, citing India’s purchase of oil from Russia, imposed another 25% tariff—bringing the total tariff on India to 50%.
With the implementation of this additional tariff, Indian products may become more expensive in U.S. markets, potentially causing Indian businesses to lose competitiveness.
What Opportunities Does Pakistan Have Now?
Pakistani exporters have the capacity and experience to capture India’s market share in the U.S., particularly in textiles, leather products, sports goods, and food items.
According to Interloop Company’s CEO, Musaddiq Zulqarnain, if Pakistan manages to gain even 10–15% of India’s market share in the U.S., the country could see an additional $500–750 million in exports.
In the coming days, cotton and rice farmers, sports goods manufacturers in Sialkot, and garment factories in Faisalabad are likely to benefit.
Government of Pakistan’s Measures
The Government of Pakistan is in talks with the IMF regarding energy reforms to reduce production costs in the sports and textile sectors.
Pakistan has recently introduced nationwide tariff reforms to facilitate the import of machinery.
Before these reforms, it was not possible for major technology companies such as Apple and Samsung to move to Pakistan. The aim of these reforms is to pave the way for Chinese, Bangladeshi, and Indian companies to relocate their production units to Pakistan.