U.S. President Donald Trump has announced new tariffs on several countries, including Pakistan. The tariffs, starting at midnight, will apply to all foreign countries with a 10% baseline tariff, though some countries will face higher rates.
Pakistan will face a 29% tariff, while other countries like Bangladesh and Sri Lanka will face even higher tariffs. However, these new rates will not affect India and Afghanistan as much.
Trump explained that the tariffs are based on current trade barriers, such as high tariffs from other countries and issues like currency manipulation. Canada and Mexico will still face a 25% tariff, but some goods covered by the US-Mexico-Canada Agreement (USMCA) will be exempt.
Trump mentioned that while he could have made the tariffs fully reciprocal, meaning the U.S. would charge the same tariffs that other countries charge, he decided not to because it would have been difficult for many nations.
Key points from Trump’s speech included:
- “In many cases, the friend is worse than the foe in terms of trade.”
- “We subsidize a lot of countries and keep them in business,” especially referring to Mexico and Canada.
- “At what point do we say you’ve got to work for yourselves?”
- “We are finally putting America first.”
- “Trade deficits are no longer just an economic problem. They are a national emergency.”
Trump showed charts showing the new tariffs. The rates ranged from 10% to 50%, with most countries facing rates around half of what they charge the U.S. In some cases, the U.S. set tariffs equal to those charged by other countries.
Here’s a list of the new tariffs on South Asian countries:
- Pakistan – 29%
- India – 26%
- Bangladesh – 37%
- Sri Lanka – 44%
- Nepal – 10%
- Bhutan – 10%
- Maldives – 10%
- Afghanistan – 10%
Tariffs on other countries include:
- China – 34%
- South Korea – 25%
- Japan – 24%
- European Union – 20%
- United Kingdom – 10%
- Brazil – 10%
- Saudi Arabia – 10%
- Turkey – 10%
- Lesotho – 50%
- Saint Pierre and Miquelon – 50%
- Cambodia – 49%
