‘Still in a Better Position’: Why Pakistan Remains Less Affected by Trump Tariffs

In a recent interview with Reuters on April 9, Aqeel Karim Dhedhi, the chairman of Pakistan's AKD Group, discussed the global impact of tariffs, particularly those imposed by former U.S. President Donald Trump. With a touch of humor, Dhedhi pointed out that while tariffs have caused problems worldwide, Pakistan has not felt the impact as severely.

"Tariffs have created problems around the world, and while Pakistan is also affected, the impact here is not as severe," Dhedhi explained. He attributed this to Pakistan’s relatively low exports and high imports, meaning the country faces less disruption compared to nations more dependent on trade.

Dhedhi also addressed Pakistan’s ongoing economic struggles, acknowledging that inflation would likely rise but not at the same alarming rates seen in other countries. “We’ve been used to dealing with such challenges,” he said, emphasizing the resilience of Pakistan’s economy in the face of global pressures.

Turning to the stock market, Dhedhi made a comparison to global trends. While global markets have seen declines of 14% to 20%, Pakistan’s stock market dropped by only 5% from its peak. His light-hearted remarks highlighted the unique challenges facing Pakistan, but also the relative stability it has managed amid the global economic turbulence.

Dhedhi’s take on Pakistan’s position amid the tariff disputes provides a humorous yet sobering view of a nation navigating both local and international economic hurdles.

Read Also: China Accepts It's A US-China Trade War, Responds To Donald Trump's Tariffs

Trump Pauses Higher Tariffs Amid Global Tensions

In the latest development regarding global tariffs, U.S. President Donald Trump has decided to pause the most recent round of tariff hikes on goods imported from 60 countries, which had been set to take effect on April 9. Initially, Trump had described these nations as the "worst offenders," but later announced that the higher tariffs would be delayed for 90 days. In the meantime, a blanket 10% tariff will apply to these countries.

However, the President did not extend this relief to China, where tariffs were increased to a staggering 125%. Trump’s decision reflects his belief that tariffs will help boost U.S. manufacturing and protect American jobs. Yet, economists have raised concerns, warning that such moves could have adverse effects on the global economy, driving up prices for consumers both in the U.S. and abroad.

This shift in U.S. policy could affect not only global trade dynamics but also continue to create uncertainty for businesses and governments, particularly in nations closely tied to U.S. trade relations, including Pakistan.