29% US tariff: Pakistan seeks to minimise impact with new strategy

ISLAMABAD: The federal government has decided to devise an ‘effective’ strategy to tackle the challenges posed by the 29 percent United States (US) tariff imposed on products of Pakistan, ARY News reported.

In response to the move approved US President Donald Trump, Prime Minister Shehbaz Sharif has established a high-level steering committee and a working group to negotiate with the US on the additional tariff issue.

The 12-member steering committee will be chaired by Minister for Finance and Revenue, Muhammad Aurangzaib, while the 19-member working group will be headed by Secretary Commerce, Jawad Paul.

Pakistan will engage in negotiations with the US to address the additional tariff issue, which is expected to impact the country’s textile sector. The move comes after the US imposed a 29% reciprocal tariff on Pakistani products in response to Pakistan’s existing tariff on US imports.

Read More: Trump’s sweeping import tariffs amp up global trade war

The steering committee will oversee the working group on the tariff issue and ensure effective negotiations with the US. The working group comprises relevant secretaries and business personalities, who will work together to find a solution to the tariff issue.

President Donald Trump has escalated a global trade war that might impede economy and fuel inflation by imposing a 10% duty on the majority of products imported into the United States and imposing greater charges on dozens of nations, ranging from friends to adversaries, Reuters reported.

Immediately unleashing instability on global markets, the broad levies unveiled Wednesday against the tranquil background of the White House Rose Garden attracted outrage from other leaders who now have to deal with the end of decades of trade liberalism that have built the global system.