The global trade landscape is undergoing significant realignment. For Pakistan, particularly for its textile sector, this is a once-in-a-lifetime opportunity to increase exports and gain market share in the world’s largest consumer economy: the United States.

The reciprocal tariffs imposed by the United States on key textile and apparel exporters—China (34%), Vietnam (46%), and Bangladesh (37%) — will create vacuum in the US market.

Pakistan, which itself faces a reciprocal tariff of 29%, remains well-positioned to step in and fill this gap. With its robust textile value chain, globally competitive labour costs, and a longstanding trade relationship with the US, Pakistan stands out as a viable and strategic alternative.

That said, it is imperative for the Government of Pakistan to urgently initiate efforts to negotiate a tariff exemption, leveraging the country’s low trade surplus with the US and mutual trade dependencies. Specific policy proposals to that end are outlined later in this article.

Currently, Pakistan is a marginal player in the US textile and apparel import landscape. In 2024, the US imported $112.9 billion worth of textile and apparel products.

Pakistan’s share was just $3.93 billion, a modest 3.5% of American textile and apparel imports. In comparison, Bangladesh accounted for 6.4%, India for 9.0%, and Vietnam for 14.1%. China, even amid declining exports due to rising tariffs and supply chain diversification, still held over 25% share.

If Pakistan were to capture even an additional 1% share in the US textile and apparel import market, it would mean $1.1 billion in extra annual exports. Over time, securing a sustainable 10% market share — well within reach — could yield $11 billion annually.

The United States has taken a deliberate shift in trade policy to diversify its supply chain and reduce........

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