NEW YORK: Pakistan’s international dollar-denominated bonds came under pressure on Friday after US President Donald Trump announced new tariffs on 60 trading partners, including Pakistan, Reuters reported.
Pakistan’s 2036 sovereign bond issuance fell 0.5 percent following the announcement, trading at 97.80 cents on the dollar as investors reacted to the latest US trade measures.
Dollar bonds of other emerging markets, including Sri Lanka and Indonesia, also weakened amid concerns over the impact of the new tariffs on global trade and emerging-market economies.
The United States announced new tariffs ranging from 10 percent to 12.5 percent on imports from several countries, citing concerns related to the enforcement of forced labour import restrictions. Pakistan was among the countries assigned a 10 percent tariff rate, alongside India, Bangladesh, Canada, Britain, Indonesia, Malaysia, and others.
The announcement came as Washington replaced a temporary 10 percent global tariff that was due to expire. The new measures form part of the Trump administration’s broader efforts to establish a new tariff framework aimed at protecting US industries and reshaping global trade relationships.
The latest tariffs cover nearly 99.4 percent of US imports, although several products, including oil, gas, fertilisers, and certain food items, have been exempted from the measures.
Pakistan had previously submitted responses to US trade authorities regarding concerns over forced labour and has been engaged in discussions with Washington to address the issue.
