Navigating US tariffs on Pakistan: Challenges & opportunities for exporters

Understanding the challenges of the new US tariff

The imposition of a 19% US customs tariff on Pakistani exports introduces a clear obstacle to maintaining price competitiveness. For many businesses operating in the import export sector, the added cost directly affects profit margins.

With the tariff applied across a wide range of goods, exporters now face the risk of decreased demand as American buyers seek lower-cost alternatives. For small and medium enterprises (SMEs) that export heavily to the US, this may translate to thinner margins.

To stay competitive, businesses must now think beyond immediate cost concerns and invest in long-term strategic solutions that protect their market share and profitability.

Strategic opportunities in a changing market

While tariffs pose an undeniable hurdle, they can also serve as a catalyst for transformation. With careful planning and strategic foresight, exporters in Pakistan can convert these trade headwinds into opportunities for growth and global expansion.

Gaining a competitive advantage

The new 19% US tariff places Pakistani exporters in a relatively advantageous position compared to some of their regional competitors. For instance, India faces a 25% tariff, while Bangladesh and Sri Lanka each contend with 20% tariffs as of October 2025².

This difference, though seemingly small, could influence sourcing decisions among US buyers. Companies seeking to balance cost and quality may view Pakistan as a more viable supplier, especially in sectors such as textiles, cotton yarn, and home furnishings, where quality and price sensitivity go hand in hand.

By capitalizing on this opportunity, Pakistani businesses can strengthen relationships with existing partners while actively pursuing new contracts with American importers seeking cost-effective yet reliable suppliers.

Market diversification

Relying too heavily on a single export destination can make businesses vulnerable to external shocks, whether tariff-related or otherwise. The current scenario offers a timely reminder for Pakistani exporters to diversify their market reach.

Expanding into regions such as the European Union, ASEAN, and Africa can open new opportunities where trade terms may be more favorable. For instance, the EU’s GSP+ scheme already provides Pakistan with preferential market access, a valuable counterbalance to US tariffs³.

Diversification not only helps mitigate risk but also strengthens long-term resilience. By spreading exposure across multiple regions, exporters can maintain stability even when trade policies shift abruptly in one market.

Supply chain optimization

Tariffs may feel like an external shock, but they also shine a spotlight on internal opportunities, particularly in how efficiently goods move from factory to market. For exporters, optimizing the supply chain from end to end is essential for staying competitive.

This could mean rethinking sourcing strategies, refining production workflows, or embracing digital tools that provide real-time visibility into inventory and logistics.

Equally important is cultivating closer partnerships with international logistics providers in Pakistan. By coordinating every stage, from raw material procurement to final delivery, exporters can ensure goods flow smoothly, costs stay under control, and the added burden of tariffs is softened.

In effect, a leaner, smarter supply chain becomes both a shield against external pressures and a driver of long-term competitiveness.

The role of a strategic logistics partner

In an increasingly complex trade environment, choosing the right logistics provider has never been more crucial. A strategic international logistics partner in Pakistan can help exporters manage the nuances of customs compliance, minimize shipment delays, and streamline operations to keep goods moving efficiently.

From assisting with tariff classifications to ensuring accurate documentation, an experienced logistics partner provides not only delivery solutions but also strategic insight. Such expertise helps exporters navigate new trade restrictions, anticipate regulatory changes, and avoid costly penalties.

Additionally, a robust logistics network ensures that goods are transported swiftly and securely, critical factors for maintaining trust with international buyers. For Pakistani businesses striving to retain their edge despite tariff pressures, efficient logistics is more than a support function; it’s a strategic advantage.

DHL Express’ role in navigating tariffs

As global trade evolves, exporters need partners equipped to help them adapt. DHL Express, as a leading worldwide express service provider, offers a comprehensive suite of solutions designed to help exporters in Pakistan overcome tariff-related challenges.

Through its customs expertise, DHL Express simplifies complex documentation processes, reducing the risk of delays or non-compliance. Its advanced digital systems also provide exporters with full visibility over their shipments, enabling better decision-making.

Beyond customs, DHL Express’ global network empowers businesses to explore new markets and trade routes with confidence. Whether expanding into Europe, the Middle East, or North America, DHL Express ensures fast, reliable, and secure deliveries, helping exporters maintain their reputation for dependability.

By partnering with DHL Express, businesses can focus on growth while leaving the logistical complexities of global trade to experienced professionals who understand the stakes involved.

From challenge to opportunity

While the introduction of a 19% US tariff on Pakistan undoubtedly presents a challenge for exporters, it also highlights the potential for strategic renewal. The key to success lies in proactive adaptation by leveraging Pakistan’s relative competitive advantage, optimizing every stage of the supply chain, and embracing innovative trade practices.

To navigate this evolving export landscape with confidence, businesses need the right allies. Stay ahead of the curve by partnering with a trusted international logistics expert in Pakistan that understands both local realities and global complexities.

Open a DHL Express Business Account today and gain access to customized logistics solutions, expert customs guidance, and a worldwide express network that keeps your business moving forward, no matter how trade policies shift.