Pakistan-US trade talks progress

Pakistan and the United States held two days of negotiations in Washington, D.C. on July 9-10, 2026, making significant progress toward a reciprocal trade agreement. The talks, led by Pakistan's Commerce Secretary Jawad Paul, focused on resolving tariff issues and expanding economic cooperation in energy, IT, mining, critical minerals, and investment. Both sides narrowed differences and built convergence, aiming for an early conclusion. The discussions come as a temporary 10% US tariff under Section 122 of the Trade Act of 1974 is set to expire on July 24. Previously, the US had imposed a 29% tariff on Pakistani exports under IEEPA, later reduced to 19% after negotiations, but the Supreme Court ruled IEEPA tariffs unconstitutional in February 2026. Separately, the USTR proposed a 10% tariff under Section 301 investigation, which Pakistan has challenged. The US is Pakistan's largest single-country export market, and a reciprocal deal could benefit key sectors like textiles, surgical instruments, sports goods, and IT services.