Pakistan pitches textile sector amid new US tariffs

Pakistan is leveraging one of North America's largest textile sourcing exhibitions to strengthen its presence in the US market as exporters navigate new American tariffs, rising production costs and intensifying regional competition.

 

The Pakistan Pavilion at Texworld New York City 2026, organised by the Trade Development Authority of Pakistan (TDAP) in collaboration with Pakistan's Consulate General in New York, features five exporters showcasing home textiles, apparel, leather garments, sportswear, gloves and other value-added products to international buyers.

 

Speaking at the opening ceremony, Pakistan's Ambassador to the US, Rizwan Saeed Sheikh, described the textile industry as the backbone of the country's export economy and reaffirmed the government's commitment to expanding exports and strengthening bilateral trade ties.

 

Pakistan's participation comes shortly after the United States imposed a 10% ad valorem tariff on Pakistani imports under Section 301, citing concerns over the enforcement of forced labour import restrictions. Although US authorities acknowledged Pakistan's legal prohibition on forced labour, they said enforcement needed to be strengthened.

 

Industry analysts estimate the new tariff could reduce Pakistan's textile exports by around $564 million in FY2026, with potential losses exceeding $2 billion if US buyers shift sourcing to lower-cost competitors.

 

Pakistan's textile sector also continues to face challenges from higher domestic energy costs, expensive financing, rising taxes and logistics expenses, while competing with exporters from Bangladesh, India, Vietnam and China in the US market.