New US Tariffs Likely to Impact Bangladesh’s Exports
- brg_news_room
- 2 days ago
- 2 min read
Bangladesh: The United States has introduced a 37 percent tariff on imports from Bangladesh under President Donald Trump's "Reciprocal Tariffs" policy, prompting concerns over the impact on the country's export-dependent sectors. The ready-made garment (RMG) industry, which accounts for over 80 percent of Bangladesh’s total exports and relies heavily on the U.S. market, is expected to be significantly affected. Economists have warned that increased costs for U.S. buyers may lead to a decline in orders and a shift in sourcing to countries with lower tariffs. Other sectors including leather, footwear, and pharmaceuticals, which have expanded their presence in the U.S. market, are also considered vulnerable to the new trade measures. The additional tariff burden could reduce the competitiveness of Bangladeshi products, especially as the country approaches graduation from its Least Developed Country (LDC) status in 2026 and continues to lack duty-free access to the U.S. market.
The implications of the tariff extend beyond export revenue, with potential effects on foreign direct investment and broader trade relationships. Uncertainty surrounding U.S. trade policy may discourage multinational companies from investing or expanding operations in Bangladesh’s export-oriented industries. This could hamper job creation and industrial growth. The introduction of the reciprocal tariffs policy is being viewed by trade analysts as a notable shift in global trade norms, challenging the long-standing Most Favoured Nation principle under the GATT/WTO framework. Varying tariff rates across different countries and product categories contribute to an increasingly unpredictable trade environment. In response, experts have suggested that Bangladesh may need to reassess its trade strategies, strengthen partnerships, and engage in global trade reforms to maintain its position in the evolving international market.
Source: The Daily Star