Trump's 25% Iran Tariff Puts Pakistan in a Bind Over Trade and Energy
World
M
Moneycontrol14-01-2026, 12:04

Trump's 25% Iran Tariff Puts Pakistan in a Bind Over Trade and Energy

  • US President Donald Trump announced a 25% tariff on any country doing business with Iran, causing concern for Pakistan.
  • The measure is a blanket secondary action, penalizing countries maintaining commercial ties with Iran regardless of scale or sector.
  • Pakistan's bilateral trade with Iran is currently $3 billion annually, with plans to expand to $10 billion by 2028, focusing on energy, agriculture, and petrochemicals.
  • A 25% tariff could severely impact Pakistan's key exports to the US and risk its energy supplies if trade with Iran is scaled back.
  • Pakistan is exploring informal trade channels but fears even symbolic trade could trigger penalties, with the Shehbaz Sharif government remaining silent on the issue.

Why It Matters: Trump's Iran tariff creates a dilemma for Pakistan, forcing a choice between US trade and regional ties.

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