[🇧🇩] Trump's Victory/Tariff/ Bangladesh

[Saif]

https://www.thedailystar.net/business/news/govt-prepares-formal-appeal-us-over-tariffs-3862996

Govt prepares formal appeal to US over tariffs

Photo: AFP

The government will shortly write to the United States Trade Representative (USTR), urging it to reduce what it describes as an irrational imposition of 37 percent reciprocal tariffs on Bangladeshi exports, a top official said yesterday.

The decision was taken at an urgent inter-ministerial meeting at the Secretariat within hours of US President Donald Trump's sweeping tariff announcement, according to Commerce Secretary Mahbubur Rahman.

Speaking to The Daily Star over the phone, he presented Bangladesh's rebuttal to the new US tariff measures.

"Our comprehensive analysis shows that American goods entering Bangladesh face an average tax incidence of merely 2.37 percent," the commerce secretary said.

"This minimal rate reflects our duty-free or near-zero tariff treatment to key US commodities including cotton, iron ore, soybean seeds and scrap metal. So, the imposition of such disproportionate reciprocal duties is not justified," Rahman said.

He added that the ministry has scheduled a high-priority meeting with Tracey Ann Jacobson, the chargé d'affaires at the US Embassy in Dhaka, on Sunday.

After the import tariff hike by the US on Wednesday, Shafiqul Alam, press secretary to the chief adviser, said that the authorities were evaluating options to adjust tariffs.

NBR Chairman Abdur Rahman Khan said revenue officials were examining which US products face duties, their respective rates, and their trade value.

Asked about Trump's claim that Bangladesh imposes a 74 percent tariff on American goods, the NBR chairman said they were verifying this figure.

"They may have cited only the highest-duty items. We are cross-checking the data," he added. "The US might have referenced either peak or average rates. We are now analysing the actual numbers."

Similarly, the commerce secretary identified several issues in the Trump administration's tariff methodology.

"Firstly, their calculations completely disregard Bangladesh's substantial imports of American services," he said.

"Secondly, they ignore the millions we pay annually in licensing fees to US technology firms and insurance providers. They have also excluded the digital service payments flowing to American platforms like Facebook, YouTube and Microsoft."

He told The Daily Star that the upcoming diplomatic engagement aims to formally communicate Bangladesh's objections.

While Rahman suggested the direct impact on Bangladesh's export volumes might prove manageable in the short term, there would be broader economic consequences.

"These measures will inevitably contribute to inflationary pressures that will reverberate through both our economies. American consumers will ultimately bear the cost through higher prices," he said.

Rahman added that President Trump himself indicated in his announcement that he remains open to bilateral negotiations with affected nations.

"We intend to pursue this opening vigorously and believe a more rational tariff adjustment can be achieved through constructive dialogue."

Commerce Adviser Sk Bashir Uddin, senior officials from the National Board of Revenue, representatives from major trade bodies, members of the Bangladesh Trade and Tariff Commission and policy specialists from various government agencies were present at the meeting.​

 

[Saif]

https://www.thedailystar.net/business/news/what-does-the-us-tariff-offensive-mean-bangladesh-3862526

What does the US tariff offensive mean for Bangladesh?

Shipping containers are stacked at the Port of Long Beach on March 4, 2025 in Long Beach, California. Photo: AFP

Bangladesh is set to come under fresh economic pressure as its exports to the United States are facing a 37 percent "reciprocal tariff" under the Trump administration's sweeping overhaul of global trade policy.

The measures mark President Donald Trump's most aggressive challenge yet to the post-World War II global trading order, drawing alarm from economists and industry leaders worldwide. Under the new plan, a minimum 10 percent tariff will apply to all US imports, while steeper, country-specific "reciprocal" tariffs will target around 60 nations, including Bangladesh. Previously, Bangladeshi goods entered the US market with an average duty of 15.62 percent.

"For countries like Bangladesh and other developing countries, this shift poses significant challenges, as they may face tougher economic conditions under such an uncertain regime," Professor Selim Raihan, executive director of the South Asian Network on Economic Modeling, wrote in a social media post.

Bangladesh's garment sector, a major export industry and critical employment source, is likely to bear the brunt of this policy. The United States has historically been a top export destination for Bangladeshi garments, and such a steep tariff could dramatically reduce competitiveness. The US accounts for 17-18 percent of Bangladesh's total global exports.

Bangladesh's exports to the US rose 1.1 percent year-on-year to $8.4 billion in 2024, driven largely by the country's dominant garment sector, according to USTR data. Bangladesh's imports from the US totalled $2.2 billion in 2024, a 1.5 percent decrease from the previous year. As a result, the US trade deficit with Bangladesh widened to $6.2 billion.

Raihan, who teaches economics at Dhaka University, highlighted the broader implications of the tariff measures. "The world has witnessed today an unprecedented shift in the global trading regime with the introduction of reciprocal tariffs by the Trump administration, signalling a potential end, or at least a significant transformation, of the Most Favoured Nation (MFN) principle that has long been a cornerstone of the GATT/WTO framework," he wrote.

The reciprocal tariff regime applies different rates to different countries and even product categories, making the global trading environment more fragmented and unpredictable. "This makes it increasingly difficult to determine the winners and losers among exporting countries in the US market, while contributing to a more volatile and unpredictable global trading environment," Raihan wrote.

On the eve of Trump's tariff announcement, major clothing retailers, including H&M, expressed concern. H&M CEO Daniel Erver noted that the tariffs will likely lead to increased prices for American consumers, signalling potential knock-on effects even within the US market.

The move is already roiling global markets and is expected to provoke retaliation from major trading partners, further destabilising an international trade system built on decades of lowering tariffs and reducing protectionism.

Experts agree that Bangladesh must respond strategically. Raihan stressed the need for proactive policymaking.

"To navigate this new landscape, Bangladesh must rethink its domestic trade policies, engage actively in the reformation of the global trade system, and enhance trade integration with key partners to secure its position in the evolving world trade order," he wrote.

Asian nations are in the line of fire. Vietnam is seeing a 46 percent tariff, White House documents showed. Other nations slapped with larger tariffs include Japan at 24 percent, South Korea at 25 percent, India at 26 percent, Cambodia at 49 percent and Taiwan at 32 percent.

China, the primary focus of Trump's trade agenda, will face a 34 percent reciprocal tariff, which stacks atop an existing 20 percent fentanyl-related duty and separate levies on categories like solar panels. That brings the effective tariff rate on many Chinese goods to well above 50 percent. Analysts at Bloomberg Economics warn this could result in up to a 90 percent decline in Chinese exports to the US by 2030.

During his 48-minute Rose Garden address, Trump underscored the aggressive nature of the policy by brandishing large visual boards displaying each nation's tariff rate, calling the measures overdue steps to rebalance global trade in favour of the United States.​

 

[Saif]

How will Trump's tariff impact Bangladesh?

 

[Saif]

https://www.thedailystar.net/opinion/editorial/news/take-steps-tackle-new-us-tariffs-3862876

Take steps to tackle new US tariffs
We must evolve with the changing global trade landscape

VISUAL: STAR

We are deeply concerned by US President Donald Trump's reciprocal tariff policy announced on April 2 against all trading partners of the US, including Bangladesh. The policy comes as a shock to the world and signals a shift from the decades-long established global trading pattern. Under the new policy, a base 10 percent tariff will be applied to all foreign goods in the US, while goods from many countries will face higher rates depending on their trade imbalances with the US.

Ironically, it was the US that was the prime mover of the idea of open and free trade by reducing trade barriers through the 1947 General Agreement on Tariffs and Trade (GATT) treaty, which later evolved into the World Trade Organization (WTO) with 166 member nations. But Trump's latest move is a complete reversal of the US's previous position and strikes at the core of globalisation as opposed to protectionism. The policy adds an extra layer of uncertainty to the already complex global trade economy, which has been hit by geopolitical tensions and lingering inflation.

As the world prepares for this new economic reality, Bangladesh must undertake measures to protect its interests. The 37 percent reciprocal tariff the US imposed on Bangladeshi exports will undoubtedly strike the RMG sector hard, as the US has historically been the top destination for our garment products. Last year, $8.4 billion worth of goods were exported to the US and only $2.2 billion were imported from the country, indicating a trade balance in our favour. While some of our main competitors, including China and Vietnam, face higher tariffs than we do, others, such as India, face lower tariffs, which may give them a built-in advantage. This raises concerns about losing the US RMG market to Indian competitors.

However, the government has already made a positive move by initiating a review of tariffs on goods imported from the US. A thorough re-examination of the trade relationship with the US and a re-assessment of the tariff structure, including the removal of tariffs on a select number of US goods, will hopefully send a positive signal to the Trump administration. Experts suggested offering lower tariff offers through the Trade and Investment Cooperation Forum Agreement (Ticfa) to open the doors for further negotiation. However, Bangladesh needs to gear up its negotiation skills and strategies and strengthen ties with key partners through bilateral and multilateral agreements to face the increasingly unpredictable global trade regime. In the long run, Bangladesh needs to diversify both its markets and products and increase efficiency and productivity to retain its competitiveness in the global market. Trump's tariff policy is undoubtedly a shock, but we must not shy away from employing creative and innovative strategies in handling this matter.​

 

[Bilal9]

Tariff weaponising by US, others concerning for Bangladesh: Rehman Sobhan

Economist Rehman Sobhan on Monday said that the world of liberalisation and globalisation was now in retreat amid weaponising the tariff by powerful nations, causing concerns for Bangladesh...

www.newagebd.net

Tariff weaponising by US, others concerning for Bangladesh: Rehman Sobhan
Staff Correspondent 25 February, 2025, 00:08

View attachment 14789
Rehman Sobhan

Economist Rehman Sobhan on Monday said that the world of liberalisation and globalisation was now in retreat amid weaponising the tariff by powerful nations, causing concerns for Bangladesh.

‘Now tariffs and a whole variety of other economic and trade sanctions are being used as political instruments by particular countries which are really the powerful ones,’ he said while taking part in the first day of a two-day conference on the ‘Recommendations by the task force on re-strategising the economy’ in the capital Dhaka.

Arranged by the Centre for Policy Dialogue and the 12-member task force, the inaugural session titled ‘Strategic policy realignment to boost investment and achieve export’ was, among others, participated by commerce adviser Sk Bashir Uddin and former commerce minister Amir Khosru Mahmud Chowdhury.

Moderated by task force chief KAS Murshid, keynotes were presented by task force members Selim Raihan and Mohammad A Razzaque at the session with calls for implementing the task force’s recommendations aiming at further trade liberalisation.

Rehman Sobhan, however, said that bilateral deals with countries from the European Union countries to the United States to China to India were going to determine the new trading regime that had to be dealt with carefully by Bangladesh.

He observed that the US might put a 30 per cent tariff on China before cutting it to 10 per cent on the back of political deal.

He said that reform proposals should be based on ability of the government bodies to operationalise and activate those.

While highlighting the major reform proposals of the task force, Murshid identified the lack of implementation capacity as a major problem.

He was surprised when the commerce adviser during his speech said he was yet to receive a copy of the task force report.

The task force, formed on September 10 past year, submitted strategies to boost the economy and mobilise resources for equitable and sustainable development on January 30.

The commerce adviser criticised the ousted Awami League regime, saying that every sector of the economy had been criminalised in the past decade.

‘Unnecessary projects and money laundering caused a significant damage to the country’s economy,’ he said, adding that manufacturing raw materials for the readymade garment sector could ensure the much needed diversification of the sector.

Amir Khosru Mahmud Chowdhury said that he supported liberalisation of trade policy and easing doing business without which Bangladesh could not go forward.

‘We will go for deregulation,’ he said adding that the economic diplomacy should be given priority.

Economist Mustafizur Rahman and Foreign Investors’ Chamber of Commerce and Industry president Zaved Akhtar, among others, took part in the discussion.​

Rehman Sobhan is an old-school Kolkata elite turned Dhaka bigwig.

I don't know if he is on RAW's payroll, but he definitely is a mover and shaker in Dhaka's influential circles and can pull strings in Dhaka.

 

[Bilal9]

"The National Board of Revenue is identifying options to rationalise tariffs expeditiously, which is necessary to address the matter," he wrote on a Facebook post this morning.

The NBR - being the corrupt idiots they are, have to wake from their long slumber and smell the "Vapa Pitha" (pancakes). They better abolish tariffs on US goods pronto....

 

[Saif]

undefined | The Financial Express

thefinancialexpress.com.bd

Chief adviser to discuss tariff issue with US administration: Commerce adviser
FE ONLINE DESK
Published :
Apr 05, 2025 21:38
Updated :
Apr 05, 2025 21:48

Commerce Adviser Sheikh Bashir Uddin has said Chief Adviser Professor Muhammad Yunus will discuss the tariff issue with the US administration.

The adviser gave the information at a press conference after an emergency meeting, convened by Chief Adviser Professor Muhammad Yunus, at the State Guest House Jamuna in Dhaka on Saturday evening.

He said the interim government will initiate efforts to reduce the trade gap by increasing the imports of some products, like soybean oil and cotton.

Meanwhile, Khalilur Rahman, high representative to the chief adviser, said there is nothing to be worried about the tariff imposed by the US.

Besides, the government has also remained engaged in discussions with US officials on the issue.​

 

[Saif]

The NBR - being the corrupt idiots they are, have to wake from their long slumber and smell the "Vapa Pitha" (pancakes). They better abolish tariffs on US goods pronto....

Currently, Bangladesh imposes 74% tariffs on the US goods.

 

[Saif]

Will soon take measures in consultation with US, nothing to be panicked: High Representative

Chief Adviser's High Representative Dr Khalilur Rahman on Saturday night said Bangladesh would soon take some measures in consultation with the US administration regarding the tariff issue, stressing that there is nothing to panic about. "We are prepared for this. We will soon take some measures.

thefinancialexpress.com.bd

Will soon take measures in consultation with US, nothing to be panicked: High Representative
UNB
Published :
Apr 05, 2025 23:57
Updated :
Apr 05, 2025 23:57

Chief Adviser's High Representative Dr Khalilur Rahman on Saturday night said Bangladesh would soon take some measures in consultation with the US administration regarding the tariff issue, stressing that there is nothing to panic about.

"We are prepared for this. We will soon take some measures. These measures will be taken in consultation with the US administration. There is nothing to fear or get panicked. We are fully prepared," he said.

The High Representative was talking to reporters at a media briefing after the emergency meeting convened by Chief Adviser Prof Muhammad Yunus at State Guest House Jamuna to discuss the US tariff issue.

Commerce Adviser Sk Bashir Uddin, Chief Adviser's Special Envoy Lutfey Siddiqi, BIDA Executive Chairman Chowdhury Ashik Mahmud Bin Harun and Chief Adviser's Press Secretary Shafiqul Alam were, among others, present at the briefing.

The High Representative said the issue is not something came up suddenly for them as the Chief Adviser instructed them to engage with the US Administration in the beginning of February this year.

Following that instruction, Rahman said, he had meetings with the US officials at the US Department of State and USTR in the second week of February. "Since then we are in continuous discussions."

He hoped that Bangladesh would get a positive response from the US side.

Commerce Adviser Bashir said they are in touch with the Bangladesh Embassy in Washington and the US Embassy in Dhaka.

He said they see both challenges and opportunities, and efforts are there to address the issue and boost Bangladesh's export.

The Commerce Adviser said based on the tariffs imposed on Bangladesh and the nature and structure of trade, they will follow the guidance of the Chief Advisor.

He said the Chief Advisor himself will also engage with the US administration to outline the position on this.

Earlier in the evening, Press Secretary Shafiqul Alam said Bangladesh will be benefited in new global trade and business order.

He said the government is very business and export friendly and Bangladesh's export will only increase instead of a decline due to the steps that are being taken.

"You can remain sure that Bangladesh's export will get a boost to the US market and the entire Western market. Steps are being taken to that end," Alam said.

He said the BIDA Executive Chairman had a separate meeting with the top business people, exporters and trade experts to get their recommendations and decide what should be written to the US Administration.

The government is taking their recommendations very seriously as they are exporters, said the Press Secretary.

Earlier the Chief Adviser held a lengthy emergency meeting with top experts, advisers and officials, giving necessary directives to deal with the US tariff issue.

Foreign Affairs Adviser Md Taouhid Hossain, Energy and Railways Adviser Muhammad Fouzul Kabir Khan, Principal Secretary to Chief Adviser M Siraz Uddin Miah, Policy Research Institute Chairman economist Zaidi Sattar, Bangladesh Bank Governor Dr Ahsan H Mansur, SDGs Affairs Principal Coordinator Lamiya Morshed, NBR Chairman Abdur Rahman Khan and Finance Secretary Khairuzzaman Mozumder were, among others, present at the meeting held at State Guest House Jamuna

On April 3, CA's Press Secretary Alam said their ongoing work with the US government is expected to help address the tariff issue.

The United States has announced a 37-per cent tariff on imports from Bangladesh as part of President Donald Trump's sweeping new "Reciprocal Tariffs" policy.

Alam said the National Board of Revenue is identifying options to rationalise tariffs expeditiously, which is necessary to address the matter.

"The United States is a close friend of Bangladesh and our largest export destination," Alam said.

The Press Secretary said they have been working with the US since the Trump Administration took over to enhance trade and investment cooperation between the two countries.

Bangladesh got slapped with a whopping 37%, Trump team's calculation being that the country imposes 74% tariffs on imports from the US that they then halved for many countries to arrive at 'reciprocal', because "we're such nice people."

Currently, most Bangladeshi goods are subjected to a 15% tariff on entry into the US market.

The new rate is thus well over double the present rate.

The only consolation for Bangladesh might be that a number of its competitors fared worse.

Vietnam got slapped with 46%, Cambodia 49%, Sri Lanka 44%. India and Pakistan fared slightly better though, at 26% and 29% respectively.​

 

[Saif]

US Tariffs: CA holds emergency meeting, give necessary directives

Chief Adviser Professor Muhammad Yunus on Saturday held an emergency meeting with top experts, advisers and officials, giving necessary directives to deal with the US tariff issue. Foreign Affairs Adviser Md Taouhid Hossain, High Representative to CA Dr Khalilur Rahman, Chief Adviser's Special Env

thefinancialexpress.com.bd

US Tariffs: CA holds emergency meeting, give necessary directives
UNB
Published :
Apr 05, 2025 22:25
Updated :
Apr 05, 2025 22:25

Chief Adviser Professor Muhammad Yunus on Saturday held an emergency meeting with top experts, advisers and officials, giving necessary directives to deal with the US tariff issue.

Foreign Affairs Adviser Md Taouhid Hossain, High Representative to CA Dr Khalilur Rahman, Chief Adviser's Special Envoy Lutfey Siddiqi and Bangladesh Bank Governor Dr Ahsan H Mansur were, among others, present at the meeting held at State Guest House Jamuna to discuss the US tariff issue, CA's Deputy Press Secretary Abul Kalam Azad Majumder told UNB.

Earlier on April 3, CA's Press Secretary Shafiqul Alam said their ongoing work with the US government is expected to help address the tariff issue.

The United States has announced a 37-per cent tariff on imports from Bangladesh as part of President Donald Trump's sweeping new "Reciprocal Tariffs" policy.

"Bangladesh is reviewing its tariffs on products imported from the United States," said the Chief Adviser's Press Secretary.

He said the National Board of Revenue is identifying options to rationalise tariffs expeditiously, which is necessary to address the matter. "The United States is a close friend of Bangladesh and our largest export destination," Alam said.

The Press Secretary said they have been working with the US since the Trump Administration took over to enhance trade and investment cooperation between the two countries.

Bangladesh got slapped with a whopping 37%, Trump team's calculation being that the country imposes 74% tariffs on imports from the US that they then halved for many countries to arrive at 'reciprocal', because "we're such nice people."

Currently, most Bangladeshi goods are subjected to a 15% tariff on entry into the US market.

The new rate is thus well over double the present rate.

The only consolation for Bangladesh might be that a number of its competitors fared worse.

Vietnam got slapped with 46%, Cambodia 49%, Sri Lanka 44%. India and Pakistan fared slightly better though, at 26% and 29% respectively.​

 

[Saif]

US starts collecting Trump's new 10pc tariff, smashing global trade norms

U.S. customs agents began collecting President Donald Trump's unilateral 10% tariff on all imports from many countries on Saturday, with higher levies on goods from 57 larger trading partners due to start next week. The initial 10% "baseline" tariff took effect at U.S. seaports, airports and custo

thefinancialexpress.com.bd

US starts collecting Trump's new 10pc tariff, smashing global trade norms
REUTERS
Published :
Apr 05, 2025 20:41
Updated :
Apr 05, 2025 20:41

A cargo ship full of shipping containers is seen at the port of Oakland, as trade tensions escalate over U.S. tariffs, in Oakland, California, U.S., March 6, 2025. Photo : REUTERS/Carlos Barria/Files

U.S. customs agents began collecting President Donald Trump's unilateral 10% tariff on all imports from many countries on Saturday, with higher levies on goods from 57 larger trading partners due to start next week.

The initial 10% "baseline" tariff took effect at U.S. seaports, airports and customs warehouses at 12:01 a.m. ET (0401 GMT), ushering in Trump's full rejection of the post-World War Two system of mutually agreed tariff rates.

"This is the single biggest trade action of our lifetime," said Kelly Ann Shaw, a trade lawyer at Hogan Lovells and former White House trade adviser during Trump's first term.

Shaw told a Brookings Institution event on Thursday that she expected the tariffs to evolve over time as countries seek to negotiate lower rates. "But this is huge. This is a pretty seismic and significant shift in the way that we trade with every country on earth," she added.

Trump's Wednesday tariff announcement shook global stock markets to their core, wiping out $5 trillion in stock market value for S&P 500 companies by Friday's close, a record two-day decline. Prices for oil and commodities plunged, while investors fled to the safety of government bonds.

Among the countries first hit with the 10% tariff are Australia, Britain, Colombia, Argentina, Egypt and Saudi Arabia. A U.S. Customs and Border Protection bulletin to shippers indicates no grace period for cargoes on the water at midnight on Saturday.

But a U.S. Customs and Border Protection bulletin did provide a 51-day grace period, for cargoes loaded onto vessels or planes and in transit to the U.S. before 12:01 a.m. ET Saturday. These cargoes need arrive to by 12:01 a.m. ET on May 27 to avoid the 10% duty.

At the same hour on Wednesday, Trump's higher "reciprocal" tariff rates of 11% to 50% are due to take effect. European Union imports will be hit with a 20% tariff, while Chinese goods will be hit with a 34% tariff, bringing Trump's total new levies on China to 54%.

Vietnam, which benefited from the shift of U.S. supply chains away from China after Trump's first-term trade war with Beijing, will be hit with a 46% tariff and agreed on Friday to discuss a deal with Trump.

Canada and Mexico were exempt from both Trump's latest duties because they are still subject to a 25% tariff related to the U.S. fentanyl crisis for goods that do not comply with the U.S.-Mexico-Canada rules of origin.

Trump is excluding goods subject to separate, 25% national security tariffs, including steel and aluminum, cars, trucks and auto parts.

His administration also released a list, of more than 1,000 product categories exempted from the tariffs. Valued at $645 billion in 2024 imports, these include crude oil, petroleum products and other energy imports, pharmaceuticals, uranium, titanium, lumber and semiconductors and copper. Except for energy, the Trump administration is investigating several of these sectors for further national security tariffs.​

 

[Saif]

US’ new tariffs put BD on uncertain ground

The new "reciprocal" tariff rates imposed by President Donald Trump on almost all of America's trading partners including Bangladesh on April 2 are deeply unreasonable and troubling on multiple fronts. This move signals a complete departure from the global trading system that the United States itse

thefinancialexpress.com.bd

US’ new tariffs put BD on uncertain ground
Published :
Apr 05, 2025 23:45
Updated :
Apr 05, 2025 23:45

The new "reciprocal" tariff rates imposed by President Donald Trump on almost all of America's trading partners including Bangladesh on April 2 are deeply unreasonable and troubling on multiple fronts. This move signals a complete departure from the global trading system that the United States itself painstakingly helped build in the decades following the Second World War and from which it greatly benefited. Economists around the world have called it one of the most damaging and unnecessary economic missteps in modern history and warned of consequences comparable to those of the 1930s. The impact is already being felt globally, with financial markets, Brent crude, and currency exchanges experiencing sharp declines. If these tariffs remain in place, they will no doubt destabilise global commerce and wreak untold havoc on households, businesses, and economies worldwide.

The US presented its new tariffs as reciprocal, claiming that other countries unfairly support their domestic industries through tariffs, currency manipulation, and trade barriers that disadvantage American companies. The administration argued that these new, supposedly discounted reciprocal tariffs were a proportional response to such unfair practices. Thus, according to the Trump administration's logic, Bangladesh allegedly imposes a 74 per cent tariff on US imports, thereby justifying a 37 per cent tariff on Bangladeshi exports to the US. However, this claim is demonstrably false. Bangladesh's customs duties, which are based on the Harmonized System (HS) code, range from 0 per cent to 25 per cent and are non-country specific. This makes the claim of a 74 per cent tariff clearly inaccurate and undermines the very foundation of the reciprocity argument. What actually happened is that the US calculated the tariff by dividing Bangladesh's $6.2 billion trade deficit with the US by its $8.4 billion exports to the US, then halved the result to arrive at 37 per cent. The same arbitrary formula was applied to other countries as well, revealing that these measures are not truly reciprocal but rather aimed at punishing trade surpluses. It also means there is no clear or actionable path for Bangladesh to take in order to have the tariff removed even if it wanted to. Bangladesh could eliminate all of its import tariffs ranging from 0 per cent to 25 per cent and still run a significant trade surplus with the US.

Despite Bangladesh's least developed country (LDC) status, the US has historically excluded its readymade garments export from duty-free access, which results in an average 15 per cent tariff. This is why the newly imposed 37 per cent reciprocal tariff will effectively add 22 per cent to this existing burden. Even though Bangladesh's apparel rivals are also subject to higher tariffs, they are not uniform. Competitors like China (34 per cent), Vietnam (46 per cent), Cambodia (49 per cent) and Sri Lanka (44 per cent) face steep rates, but India (26 per cent) faces milder tariffs. Given that most competitors face similar tariffs, the competitive landscape may remain stable for now. However, there's a real risk that manufacturers, deterred by the high tariffs, could move production to countries like India for lower tariff, or explore emerging garment export hubs like Brazil and the Philippines where lower duties and growing garment industries offer alternatives.

There is no escaping the disruption caused by the new tariffs. Countries are already retaliating with their own measures, as China has done, that may escalate into full-blown global trade war. Under such circumstances, the US is expected to pursue bilateral negotiations with individual countries to secure more favourable terms. Bangladesh must be prepared to engage in such talks, but what leverage does it have when negotiating with a much larger trading partner is a key question. In the long term, Bangladesh must focus on diversifying both its export markets and product base to build resilience against future shocks of this nature.​