ISLAMABAD: Pakistan’s value-added textile sector has raised alarms over the United States’ recent imposition of a 19 per cent tariff on Pakistani exports, warning that it could neutralise any potential gains in market access.

The new tariff, added on top of existing duties, is seen as significantly higher than expected, undermining hopes for improved trade relations and market share, particularly in comparison to regional competitors such as Vietnam and Bangladesh.

Industry leaders argue that the new tariff structure, combined with rising domestic production costs, makes it increasingly difficult to compete. One exporter noted that the higher tariffs, along with Pakistan’s growing production costs, could result in a decline in export volumes. “The deal is neutral at best,” the exporter said, pointing out that regional players like Vietnam and Bangladesh, with their lower production costs, remain better positioned.

Karachi Chamber of Commerce and Industry (KCCI) President Jawed Bilwani told Dawn that Pakistan’s primary competitors in the US market, Bangladesh and Vietnam, stand to benefit from the existing tariff structure due to their significantly lower production costs.

Textile sector struggles as tariff hike limits market gains

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