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Pakistan–U.S. Tariff Agreement: What the 19% Rate Means in 2026

Pakistan said its negotiated U.S. reciprocal tariff fell to 19%, but that figure does not establish the all-in duty for every product. Negotiations continued in 2026, alongside a separate U.S. Section 301 action with product exemptions.
From TheFinanceBase Team3 min to read
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Pakistan announced a U.S. trade agreement in July 2025 and said the negotiated reciprocal-tariff rate had fallen from 29% to 19%. That figure is not a universal, all-in duty on every Pakistani product: negotiations continued in 2026, and the United States separately announced a Section 301 measure with a 10% rate category for Pakistan and product exemptions. The available announcements do not establish a final 2026 agreement or each product’s current duty.

What Pakistan announced in 2025

On July 31, 2025, Pakistan’s Press Information Department said the two countries had finalized a trade agreement intended to expand bilateral trade, market access, investment, and cooperation. The announcement identified Pakistan Finance Minister Muhammad Aurangzeb, U.S. Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer as participants in a Washington meeting. Pakistan said the agreement would reduce reciprocal tariffs, particularly on Pakistani exports to the United States. Pakistan Press Information Department announcement

On August 12, Pakistan’s government said the reciprocal tariff had been negotiated down from 29% to 19%. This is the Pakistani government’s reported figure; it should not be read as confirmation of the total duty applicable to every product or shipment. Pakistan Press Information Department account

Areas named for cooperation

The July announcement cited energy, mines and minerals, information technology, and cryptocurrency as areas for economic collaboration. It described enhanced market access and investment as expected benefits, not as outcomes already demonstrated in trade or investment data. Pakistan Press Information Department announcement

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Pakistan’s August account listed apparel and textiles, rice, salt, surgical goods, sports goods, electronics, food and agriculture, and leather among sectors represented at a meeting with exporters. That list identifies sectors represented at the meeting; it does not show that all those goods received identical tariff treatment. Pakistan Press Information Department account

Why the 19% figure is not a complete answer to “What is the U.S. tariff on Pakistani goods?”

The 19% figure refers to the reciprocal-tariff reduction as Pakistan announced it. It does not, by itself, calculate the duty for a specific product or entry. Product classification, the applicable tariff schedule, the date of entry, and any relevant exemptions or separate measures can affect the amount due. The available announcements do not provide enough information to calculate one current rate for all Pakistani goods.

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There is also a separate historical statistic that can be easy to confuse with the U.S. rate. USTR’s 2025 National Trade Estimate reported that Pakistan’s average most-favored-nation applied tariff was 10.3% in 2023. That is a historical statistic about Pakistan’s import tariffs, not the U.S. tariff on Pakistani exports. The report also states that the United States and Pakistan signed a Trade and Investment Framework Agreement (TIFA) in June 2003. USTR 2025 National Trade Estimate Report

What changed in 2026

Negotiations continued

On May 6, 2026, Pakistan said Commerce Minister Jam Kamal Khan and Deputy U.S. Trade Representative Rick Switzer discussed bilateral trade, ongoing negotiations, and a balanced, mutually beneficial agreement. Pakistan account of the May 2026 meeting

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On July 11, 2026, Dawn reported, citing the Pakistani Foreign Office spokesperson’s account of the commerce secretary’s description, that talks in Washington had made “significant progress” on a proposed reciprocal agreement and aimed for an early conclusion. Progress toward a proposed framework is not proof that a final 2026 text was signed or took effect. Dawn report, July 11, 2026

A separate U.S. Section 301 action

On July 23, 2026, USTR announced final Section 301 action tied to forced-labor import prohibitions. USTR listed Pakistan in a 10% rate category under that action and described product exemptions. This is a distinct measure with a different stated legal basis from the reciprocal-tariff announcement. The figures should not simply be added together or treated as one rate that applies to every Pakistani import; the relevant product rules and exemptions matter. USTR Section 301 action

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What exporters and buyers should take from the announcements

  • For a specific shipment: determine the product’s tariff classification and entry date, then check the applicable U.S. tariff schedule and whether any exemption or separate measure applies. The announcements alone are not a product-level duty calculation.
  • For the status of the deal: distinguish Pakistan’s 2025 announcement and reported 19% reciprocal rate from the 2026 reports of ongoing negotiations. The latter describe progress toward a proposed agreement, not a published final 2026 text.
  • For expected business gains: treat named sectors, anticipated market access, and expected investment as stated aims. The announcements do not establish that export growth or investment gains have already occurred.

For a personal buyer, the headline rate alone is not enough to predict the import duty on a particular purchase. For exporters, the relevant question is the treatment of the specific goods on the relevant entry date—not whether the goods appear on a sector list from a government meeting.

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