The United States and Pakistan will hold trade talks next week in the wake of President Donald Trump’s proposed 29% tariff on imports from the South Asian since it has $3 billion trade surplus with Washington.
President Trump said Friday evening that a Pakistani delegation will be in D.C. for talks with his administration while the U.S. is “very close” to reaching a trade agreement with India.
The U.S. is Pakistan’s largest trading partner which totaled $5.3 billion in 2024.
The background to the talks also includes Trump’s offer to Pakistan and India hat he would expand commercial ties with both if they stopped their clashes.
After he brokered a ceasefire between Pakistan and India, Trump revealed that he had made a stark choice to the two South Asian neighbors, clash and lose trade with the United States or stop the conflict and have greater trade with the United States.
On Friday, he renewed his stance.
“We stopped India and Pakistan from fighting,” Trump noted.
“I believe that could have turned into a nuclear disaster, and I want to thank the leaders of India and Pakistan, and I want to thank my people. Also, we talk trade, and we say we can’t trade with people who are shooting at each other and potentially using nuclear weapons. They’re great leaders in those countries, and they understood, and they agreed.”
Trump said he is proud of Pakistan-India deal that stopped a potential nuclear war.
“I think the deal I’m most proud of is the fact that we’re dealing with India, we’re dealing with Pakistan and we were able to stop potentially a nuclear war through trade as opposed through bullets… Normally they do it through bullets. We do it through trade. So I’m very proud of that.”
On negotiations with Pakistan, he said, “Pakistan representatives are coming in next week. We’re very close to making a deal with India. And I wouldn’t have any interest in making a deal with either if they were going to be at war with each other…”
Trump has also proposed a 26% tariff on Indian goods.
The tariffs on both Pakistani and Indian imports are paused for 90-days as part of the broader decision on the worldwide tariffs.
Trump’s latest remarks came on the same as the U.S. and Pakistan formally commenced negotiations on the reciprocal tariffs.
Islamabad sees an opportunity to capitalize on the Trump administration’s interest in bolstering trade with South Asia.
Finance Minister Muhammad Aurangzeb and Ambassador Jamieson Greer, United States Trade Representative, formally began the talks through a telephonic call on May 30 (today), an advisor to the finance minister said on X.
The Pakistan delegation for trade talks is expected to include business leaders and leading exporters.
