Zero tariffs on US electronics, machinery, EVs to pacify Trump

US President Donald Trump is doing what he is doing from a position of strength as the world reaps roughly $800 billion annually from the US trade deficit. Next, while global leaders largely react to shifting circumstances, Trump has monopolised a proactive stance, setting the pace of international trade policy.

Trump appears guided by a clear strategy, in contrast to other world leaders who seem to lack a cohesive plan.Focusing on Pakistan, the US stands out among Pakistan’s 190 trading partners as the only one with which Pakistan enjoys a multi-billion-dollar trade surplus. To preserve this valuable advantage, Pakistan must deploy every available tool -- strategic diplomacy, economic logic and political appeal -- with precision and purpose.

Trump requires a political victory to convince American voters that his aggressive tariff strategy is effective. Pakistan should leverage economic logic to deliver what he seeks -- a tangible win that bolsters his narrative.

Pakistan can deliver Trump a loud political win through shrewd economic calculus: zeroing out our tariffs on US electronics, machinery and electric vehicles (EVs). Last year, Pakistan’s imports of these categories from the US totalled approximately $350 million per HS codes 84 (machinery), 85 (electronics), and 87 (vehicles, including EVs). Slashing these duties to zero would forfeit roughly $17.5 million in revenue. In exchange, we’d negotiate reciprocal tariff concessions on our $4.2 billion textile exports to the US -- a linchpin of our trade portfolio under HS code 61-63 -- securing market access for 40 per cent of our labour force, bolstering GDP growth and stabilising the rate of unemployment.

Pakistan must prioritise two key strategies: data-driven decision-making and a mutual-benefit framework, aligning with both the national interests of Pakistan and the political priorities of President Trump.