Pakistan's Textile Sector Faces Challenges Amid New US Tariffs
Pakistan is leveraging the Texworld New York City 2026 exhibition to bolster its textile exports to the US amidst new American tariffs and rising production costs. The Pakistan Pavilion, organized by the Trade Development Authority of Pakistan, showcases products from five manufacturers. The US has imposed a 10% tariff on Pakistani imports, effective July 24, following an investigation into forced-labor import prohibitions. This tariff could potentially reduce Pakistan's textile exports by $564 million in FY26, with losses possibly exceeding $2 billion if American buyers shift to lower-cost suppliers.