#TradeWarEases
The ongoing US-China trade war, reignited under President Donald Trump’s administration in 2025, continues to reshape global economic dynamics and places Pakistan in a delicate position. The trade conflict, marked by steep tariffs-up to 145% on Chinese goods and retaliatory measures from China-has disrupted supply chains and global markets, creating uncertainty for many economies, including Pakistan’s[3][6][8].
Pakistan’s strategic importance lies in its unique relationship with both superpowers. Economically and militarily tied to China through the China-Pakistan Economic Corridor (CPEC), a $65 billion flagship project under China’s Belt and Road Initiative, Pakistan benefits from massive infrastructure investments and strategic connectivity[3][7]. However, these ties complicate Islamabad’s relations with the US, which remains a historic ally and key trade partner. The US pressures Pakistan to align against Chinese tech firms like Huawei, yet Pakistan has cautiously maintained neutrality to avoid jeopardizing its economic interests and access to both markets[3].
The trade war’s impact on Pakistan’s economy is twofold. On one hand, tariffs on Chinese exports have redirected some global orders to Pakistan, potentially boosting its textile and export sectors[5]. On the other hand, disruptions to CPEC projects and strained foreign exchange reserves pose risks to economic stability. Pakistan must carefully navigate this geopolitical crossfire, balancing its strategic alliances while mitigating recessionary pressures and safeguarding its economic future[3][5][7].
In summary, Pakistan’s role amid the US-China trade war is that of a pivotal regional player caught between competing powers. Its economic growth and security environment depend on maintaining diplomatic agility and leveraging its partnerships without becoming entangled in the escalating global trade conflict.
