On April 7, Pakistan’s Foreign Minister Ishaq Dar held a telephone conversation with U.S. Secretary of State Marco Rubio – their first discussion since the current Trump administration took office on January 20. During the call, they discussed regional security, economic cooperation, and the current state of the Pakistan-U.S. relationship, which, despite some recent improvements, remain weak.
Dar reiterated Islamabad’s commitment to strengthening ties with Washington and emphasized the importance of enhancing bilateral cooperation in counterterrorism, trade, and investment. Rubio expressed a strong interest in collaborating with Pakistan on trade and investment, particularly in the area of critical minerals. He noted that trade and economic cooperation would be a defining feature of future relations between Washington and Islamabad.
Furthermore, U.S. Department of State Spokesperson Tammy Bruce stated that Rubio thanked Islamabad for the arrest and transfer of Mohmmad Sharifullah, allegedly an Islamic State Khorasan Province (ISKP) commander who took part in the 2021 Kabul airport bombing, to the United States. U.S. President Donald Trump had also publicly praised Pakistan for its help in arresting Sharifullah during his joint address to the U.S. Congress on March 4.
This phone call between two counterparts took place during a critical time for bilateral relations between Pakistan and the United States. Just days before the call, on April 2, Trump made a significant announcement declaring new tariffs in what he referred to as a “declaration of economic independence.” Many economists believe that the Trump administration’s risky approach could weaken economic growth and raise prices for consumers in U.S. markets. Pakistan, among dozens of other countries, was targeted by these tariffs.
Trump announced a 29 percent tariff on goods from Pakistan, which has a 58 percent tariff on imports from the United States. The imposition of tariffs could significantly affect Pakistan’s economy, leading to a notable decrease in the country’s export revenues. According to a policy note from the Lahore School of Economics, these tariffs could cost Pakistan $4.22 billion over five years if the entire burden is passed on to consumers in the U.S. markets. However, if Pakistani exporters choose to absorb part of the tariff costs or negotiate with their U.S. buyers to share the burden, the actual impact of the tariffs may be less severe.
During his weekly press briefing, Pakistan’s Foreign Office spokesperson, Shafqat Ali Khan, announced that Islamabad is actively monitoring the situation regarding the recent imposition of tariffs by the United States and the subsequent suspension of these tariffs for a 90-day period affecting most countries. The government of Pakistan is set to send a high-level delegation to the U.S. to discuss the recent tariffs and foster trade relations between the two countries.
The issue of tariffs was also discussed during the phone call between Dar and Rubio, alongside conversations about how to achieve a balanced and fair trade relationship. However, if the Trump administration proceeds with its tariffs after the 90-day pause, it could negatively impact trade relations between Washington and Islamabad. The United States is a major trade partner for Pakistan, with bilateral trade in goods surpassing $7 billion in 2024 and a trade deficit of $3 billion in Pakistan’s favor.
Along with tariffs, there are worries that the Trump administration could also bar Pakistani passport holders from entering the United States based on a government review of each country’s vetting and security risks. However, in a subsequent report, it was suggested that Pakistani passport holders may not face an outright travel ban, but they could undergo severe scrutiny when applying for a visa. There has been no official announcement in this regard yet. Such measures, nevertheless, could have a negative impact on bilateral relations.
In addition to these developments, the issue of sanctions against Pakistani officials could affect ties between Islamabad and Washington. In March, U.S. Representatives Joe Wilson and Jimmy Panetta introduced the “Pakistan Democracy Act,” which seeks to impose individual sanctions against Pakistan’s army chief, General Asim Munir, for the “persecution of political opponents,” including former Prime Minister Imran Khan. The bill aims to implement sanctions on Munir within 180 days, under the Global Magnitsky Human Rights Accountability Act, which allows for violators to be denied entry to the United States and made ineligible for U.S. visas. In response, Pakistan’s Foreign Office downplayed the situation, stating that the bill “did not align with the current positive dynamics of bilateral relations” between the two nations.
Despite the ongoing issues, the phone call between Dar and Rubio appears to be a positive development in improving bilateral relations. There are speculations that Washington plans to send a special government delegation to visit Pakistan for meetings with the president, prime minister, and military leaders. The previously mentioned issues, from tariffs to sanctions, could affect relations in the short term until both parties agree on mutually beneficial solutions. Nonetheless, it is encouraging for Pakistan to see its growing relevance in U.S. foreign policy.