US President Donald Trump has recently announced to impose new tariffs on many countries of the world. The name of Pakistan was not included in these countries till now, but still Shahbaz Sharif has a tension that Trump should not announce a long tariff on Pakistan. Pakistan Finance Minister Aurangzeb is visiting the US.

Aurangzeb talked with American officials Lutynik and Greyer about tariffs. During this time, along with the tariff issue between the two countries, he also considered strengthening business relations. The Pakistani Foreign Ministry issued a statement on the matter, saying that the conversation was productive and both sides called it positive. Both countries discussed opportunities to promote economic partnership. This dialogue is considered important for Pakistan’s export sector, especially textile and agricultural sector.

America did not make any official announcement

Even though there has been talks between Pakistan and America, but no formal announcement has been made from the US so far. According to sources, the US will currently declare a policy for Pakistan only after completing the talks with its other business colleagues. This attitude suggests that the US is holding separate talks with all partners as part of a broad tariff strategy, so that a joint and strict policy can be revealed.

New twist in America-Pakistan relationship

Significantly, in the last few years, relations between America and Pakistan have been stressful. But since the meeting of Donald Trump and Pakistani Army Chief Aseem Munro at the White House last month, there have been indications of improvement in relationships. It was only after this meeting that business talks between Pakistan and America started, which is now being transformed into a wider tariff discussion.

Tariff influence on Pakistan’s economy

Tariffs can prove to be a big risk for Pakistan’s economy. Export -dependent economy may get a big shock. Pakistan’s textile, agricultural and industrial products may be affected in the US market. Increasing tariffs can make exports expensive and weak in competition. However, if the agreement is successful, Pakistan can get a fee concession. This can strengthen Pakistan’s economic stability and strategic relations with the US.

Also read: Amid stress from Iran, America did a nuclear deal with this big Muslim country, did Trump give a message to Khamenei?

Us Donald Trump Tariff on India: According to a new report by CARAEGE ratings, India may face export losses of $ 3.1 billion (about Rs 25,700 crore) due to a possible new tariff to be declared by US President Donald Trump. This figure is equal to about 0.1 percent of India’s GDP (GDP), which can become a matter of concern for the Indian economy.

According to Smita Rajpurkar, director of CARAIGE Ratings, increasing tariffs may have a serious impact on India’s major export areas, including many areas. For example, textile and garment industry, automobiles and auto parts include IT and pharmaceuticals. Explain that a huge amount of cloth is exported to America from India, which will be affected by increasing tariffs. The Indian auto sector is already facing recession, so it can be further affected by the new tariff. India’s IT and pharmaceutical companies make good profits from the US market. Increasing tariffs will increase cost, which can reduce the competitive capacity of Indian companies.

Possible impact of tariff on India
If US President Donald Trump announces a tariff on India, then many types of major effects can be seen, which is not being considered right for the Indian economy in any way.

Exports fall: Increased tariffs will cost Indian companies to send goods to America, which can reduce their demand.
Putstation in currency: Indian rupee can weaken due to increasing business tension with America, which will make imports expensive and inflation can increase.
Investment reduction: Global investors can avoid investing in India due to increasing trade stress, which can affect Indian stock market.
Business war threat: The report also warns that if the global trade war broke out, it can increase the instability in the Indian economy and negatively affect financial stability.

Can India overcome this crisis?
India will need to adopt some strategies to overcome this crisis, such as focus on other export markets. Along with this, insisting on increasing trade with Europe, Africa and Asian countries by reducing dependence on America. The local industry will have to provide subsidy and tax relief so that they can withstand the impact of the new tariff and maintain competition. India will have to talk to the US on new business treaties, so that economic balance can be maintained.