Donald Trump’s Trade War With China May Shift Export Orders to Pakistan: Report

Given the trade wars and tariffs imposed on China by the USA, export orders are expected to be redirected toward competitive markets like Pakistan, according to AKD Securities Limited. The brokerage house said in this year’s Pakistan Strategy Report 2025, “The textile and export-oriented sectors are expected to play a pivotal role in driving energy demand, especially given the trade wars and tariffs imposed on China by USA and Europe, which are anticipated to redirect orders toward competitive markets like Pakistan”. New US President Donald Trump has imposed a 10 percent tariff on all Chinese imports, which many economists have termed the beginning of a new trade war. Trump said on Sunday that the European Union is his next target for higher tariffs. A timeline hasn’t been communicated so far in this regard. AKD further wrote that the newly elected administration in the USA imposing restrictions or tariffs could negatively impact Pakistan’s exports, leading to a widening trade deficit. This may also create pressure on currency stability as export revenues decline and foreign exchange reserves come under strain. It said US-led restrictions on China could create challenges for the China-Pakistan Economic Corridor (CPEC), potentially disrupting trade and infrastructure projects, as well as complicating diplomatic and economic relations between the involved countries. Also, non-compliance with IMF targets may lead to an early exit from the IMF program, halting financial inflows, destabilizing the currency, and exerting pressure on foreign reserves, the brokerage house added.