Pakistan, US Reach Trade Framework Ahead of Trump’s July 9 Tariff Deadline

Pakistan and the US have agreed on a reciprocal tariff framework just days before the July 9 deadline, safeguarding key Pakistani exports like textiles and agriculture, while opening pathways for American crude, mining, energy, and infrastructure investments.

Pakistan and the U.S. have reached a broad understanding on a long-term reciprocal tariff agreement just ahead of July 9. This framework aims to prevent the reinstatement of a 29 % tariff on Pakistan’s textile and agricultural exports, protecting approximately $5 billion in annual trade.

A four-day session in Washington, led by Pakistan’s Commerce Secretary Jawad Paal, crafted the agreement. The framework includes increased market access for U.S. goods, especially crude oil, and potential investment in mining, energy, and infrastructure sectors, such as the Reko Diq copper-gold project.

Palatable to U.S. objectives, Pakistan’s proposal integrates concessions for American energy and mining interests. Previous agreements indicate concessions on mining in Balochistan and Reko Diq, with potential Financing by the U.S. Export‑Import Bank.

The deal is still a framework understanding rather than a signed treaty. Final sign-off is pending as the U.S. aligns it with simultaneous trade negotiations with other countries.

This move averts a projected 20–25 % drop in Pakistani exports, a $1–1.4 billion loss, with significant macroeconomic consequences. It also signals a strategic reset in U.S.–Pakistan economic relations, shifting from Trump-era protectionist tariffs to a cooperative engagement model .

During these talks, Pakistan leveraged interest in its mineral wealth and complex projects like Reko Diq. The deal fits into a larger narrative, matching prior discussions in April with U.S. officials, including at the State and Ex‑Im Bank levels, regarding critical minerals and investment frameworks.

The framework aligns with a global U.S. tariff strategy: Trump plans to issue reciprocal tariff notices to multiple countries around July 9. Pakistan’s agreement places it among those avoiding higher trade barriers.