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

[Saif]

The tariff thing Trump implemented is not exclusive to us in Bangladesh, and in fact punishes other competitor countries In Asia (who compete on similar exports to the US) similarly or worse. For example, Vietnam tariff rate is higher - as is Cambodia's. Although India's rate is lower than ours, India's exports (apparel-wise) to the US are hardly as wide-ranging as that of Bangladesh. And tariff's on India's Pharma (as well as back office exports) could be punitive as well, which is yet to be announced.

The chickens have come home to roost.

I think Trump's reciprocal tariff will backfire. The USA needs the rest of the world to maintain economic growth. They alone cannot survive without the help of allies. Hope Trump understands sooner.

 

[Saif]

Bangladesh to write to Trump and US administration on tariffs

In the wake of the reciprocal tariffs imposed by the US President Donald Trump administration, the Bangladesh government will send two letters to the United States within the next 48 hours. One letter from the Chief Advisor will be sent to US President Donald Trump and one letter from the

thefinancialexpress.com.bd

Bangladesh to write to Trump and US administration on tariffs
FE ONLINE DESK
Published :
Apr 06, 2025 18:31
Updated :
Apr 06, 2025 18:31

In the wake of the reciprocal tariffs imposed by the US President Donald Trump administration, the Bangladesh government will send two letters to the United States within the next 48 hours.

One letter from the Chief Advisor will be sent to US President Donald Trump and one letter from the Trade Advisor will be sent to USTR.

The decision was taken at a meeting held at the Finance Ministry's meeting room at the Secretariat on Sunday (April 6).

Chief Advisor's Press Secretary Shafiqul Alam informed reporters after the meeting, according to local media reports.

He said the meeting was attended by four advisors, a high-level representative, a special ambassador, about ten secretaries, and four representatives from big business.

The chief advisor's press secretary said, "We are constantly talking to them (US representatives). In addition to their embassy officials in Dhaka, there are USTR officials. Whatever our decision is, we will give two letters. Both will go within the next 48 hours. One letter will go from our chief advisor to US President Donald Trump. Another letter will go from our trade advisor to USTR."

When asked by journalists what the letter would contain, he said, "Today we discussed what the letter would contain and what kind of language would be used."

Today, there were four advisors, a high representative, a special ambassador, about ten of our secretaries, and four representatives from among the big businessmen. We talked to everyone. After the discussion, it was decided that two letters would be sent within 48 hours.​

 

[Saif]

The future of US-Bangladesh trade

All hell broke loose at Rose Garden on Apr 2 as President Donald Trump unveiled new tariff structure for US trade partners all around the world sparing only 11 countries that includes Russia and North Korea. With new trade regime US aims to topple the age of globalisation- headlined Wall Street Jou

thefinancialexpress.com.bd

The future of US-Bangladesh trade
AL MAMOON
Published :
Apr 06, 2025 15:28
Updated :
Apr 06, 2025 15:32

All hell broke loose at Rose Garden on Apr 2 as President Donald Trump unveiled new tariff structure for US trade partners all around the world sparing only 11 countries that includes Russia and North Korea. With new trade regime US aims to topple the age of globalisation- headlined Wall Street Journal on their coverage of the chaotic Wednesday announcement. Indeed, it is, if the new rates come into play next Wednesday this would be a reversal for human history. It was the painstaking rounds of trade talks in the 80 years after the Second World War that lowered tariffs and led to unprecedented global prosperity, including for America (Zanny M Beddoes, Editor-in-chief, Economist).

The new numbers

The new tariff plan has two levels of levies. First, there will be a 10 per cent tariff on all imported goods across the table (US ports have started collecting it from Apr 5, breaking WTO framework). On top of that there is another double-digit tariff for about 60 countries who sell more to America than they buy from. This second layer of protectionism has erupted debate more than the first as it questions the very fundamentals of trade.

Here is the deal. The difference between goods coming into US and goods going out is divided by the former and then one half of the percentile is slapped as reciprocal tariff. For instance, in 2024 we sold $8.36 million dollar worth of goods and services while imported only $2.21. If the differential $6.15 million is divided by $8.36, one gets 74 per cent. United States Trade Representative (USTR) named it as tariffs charged to US and slapped one half of it (37 per cent) as a generous reciprocal tax. By the same formula some hardest-hit ones are Cambodia (49 per cent), Laos (48 per cent) and Vietnam (46 per cent) and Sri Lanka (44 per cent).

China secures third position in the list of United States’ trade partners only after Mexico and Canada but still could not bend it their way. Against a $143 billion import from US they sent $438.95 billion in 2024. That is a deficit of $295.4 billion. By the new flawed formula tariff slapped on China is 34 per cent. China however has reacted sharply and as this newspaper ran, has slapped back the same rate on China-bound American products.

The rationale behind

The philosophy behind this dubious calculation was the highlight of the 53-minute Liberation Day speech of the president on the White House lawn. He fuelled the ‘Made in America’ slogan and fired the sweeping new duties. Trump accused America’s trading partners of undermining the United States for decades, saying they have engaged in unfair trade practices to steal the country’s wealth and enrich their own economies (Ana Swanson, New York Times).

The unprecedented escalation of tariffs is sure to impact all countries, far and near in manifold ways. On the flip side, Americans will also face price escalation when they go to shop. Groceries, clothing, shoes, electronics - prices of nearly everything will drive up as soon as next week. America does not produce coffee, bananas, or lobster. It imports them. American giants like Nike, Ralph Lauren, Levi Strauss or H&M sources from countries like ours. In the new trade regime, the quality of our products will remain the same bringing us the same dollar amount while the prices skyrocket. This will bleed American people, but the government will bag more money in the borders. The president has a sweetener for this. He equates trade with tax. He thinks, the more America earns from trade the less the citizens need to pay as income tax. There is a 39.5 per cent tax bracket for high earners which can be removed permanently and 37 can stay as interim top and pave the way for further tax cuts.

Trump administration believes, as a mid-term effect companies will come crawling to set up plants in America and fairness will be restored as what has happened since Second World War in the name of global trade has ripped off America.

The silver lining

Some of Trump’s towering rates are imposed on our rivals in the ready-made-garment industry. It is a sigh of relief that we are not being targeted here, it is rather a wholesale action with possible repercussions from all corners of the world.

Second biggest thing is the fragile framing of the whole scheme. The cockamamie calculation is based on the deficit. If the gap narrows, the rates shrink with it, if at some point it is even then there would be no added tariff burden at all. We can work on that right from now.

This week US stock markets suffered their steepest declines since 2020 on fears Trump administration’s heightened tariffs will trigger a trade war globally and eventually drag the US economy into recession.

Our actions and reactions

We as one of the fast-growing trade partners of US (50th out of 233 countries and territories) cannot sit and wait for others to act. No other than the Chief Advisor has met with advisors and trade leaders on Apr 4. That is an excellent headway. Here is our six-point proposition of how we may navigate through in the coming weeks and months:
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• In Trade and Investment Cooperation Forum Agreement (TICFA) Council meetings between the two governments, Bangladesh has been saying it would welcome more US investment in its Economic Zones. Importing more cotton from US was also a point of discussion for last few years. The new tariff structure keeps room for a reduced rate for goods exported to the US with raw materials imported from US. Hence, cotton can take a central position in lifting our RMG exports and reducing the trade gap.​

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• The US had been vocal for implementing reforms to improve the investment climate for US-sourced FDI including initiating stakeholders’ consultations on a competitive payment mechanism, insurance market liberalisation and streamlining bureaucratic process for repatriating profits. Immediate past US ambassador to Bangladesh Peter D Huss took up these issues to multiple ministries multiple times, developments are not very visible though.​

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• The US Trade and Development Agency (USTDA) under its Global Procurement Initiative (GPI) expressed interest in recent past to assess the current Public Procurement Rules (PPR) in Bangladesh. As the guardian of PPR, Implementation, Monitoring and Evaluation Division (IMED) of Ministry of Planning can let them do so. This can have a lasting impact on designing custom capacity building programmes that support the adoption of value-based procurement mechanisms focused on obtaining the highest quality goods and services. Also, our possible new imports under USTDA guidelines can go above and beyond the proposed rates while it works in shrinking the variance.​

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• Newspapers ran reports on Apr 5 that BIDA and NBR officials detected 30 import items with higher tariffs ranging from 26.2 to 80 per cent while weighted-average tariff for all US goods combined is less than 5.0 per cent. This is a talking point for us. Look, what we have offered you, and what we got in return!​

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• Revisiting the non-tariff trade barriers is also a must do now. Double fumigation of cotton was such a barrier that took us years to cut down. Outward remittance has slowdown issues. There was never a better time for us to bring regulatory changes and policy support.​

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• Talks, talks, talks. We should engage at different levels with our counterparts in US – association and chamber level, agency and ministry levels, global forums and civil society level, bilateral or multilateral come what may. There has to be an all-encompassing effort to shake it up, accelerate import leading to an export shoot up, eventually escalating total trade.​

What we should aim at is more trade with America, not the other way round.

The writer is a former commercial counselor at the Los Angeles Consulate​

 

[Saif]

Bangladesh to send two letters to US in next 48 hrs

One letter will be addressed to US president Donald Trump from chief adviser Professor Muhammad Yu

en.prothomalo.com

Bangladesh to send two letters to US in next 48 hrs
Staff Correspondent
Dhaka
Updated: 06 Apr 2025, 19: 39

Press secretary to the chief adviser of the interim government, Shafiqul Alam.File photo

Bangladesh will send two official letters to the United States within the next 48 hours, detailing the interim government’s response to the 37 per cent reciprocal tariff imposed by the Donald Trump administration on Bangladeshi exports.

Shafiqul Alam, press secretary to the chief adviser, made the disclosure at a press briefing on Sunday, after a review meeting at the secretariat.

One letter will be addressed to US president Donald Trump from chief adviser Professor Muhammad Yunus, while the second will be sent to the US trade representative (USTR) from the finance adviser.

The review meeting continued from 3:30 pm to 5:00 pm, with the finance adviser in the chair. Present were four advisers, four business representatives, the chief adviser's high representative on the Rohingya crisis and priority issues, ten secretaries, the central bank governor, the executive chairman of BIDA, and other senior officials.

Responding to a question on the content of the letters, press secretary Shafiqul Alam said, “Discussions are ongoing over the issue. All participants expressed their views in the meeting. Action plans of Bangladesh will be mentioned in the letters.”

He added that the messages will be business-friendly and focused on ensuring mutual benefits for both countries. “The US is the largest market in the world. There is an opportunity to further expand our trade there,” Alam said.

Finance adviser Salehuddin Ahmed disclosed four key issues of the action plan of Bangladesh. Firstly, bilateral trade between Bangladesh and the US will be expanded. Secondly, the capacity of the readymade garments sector in Bangladesh will be enhanced further in comparison with the competitors, so that the US consumers consider the Bangladesh products as superior.

Thirdly, different services should be imported from the US, instead of products only. Fourthly, non-tariff barriers – both official and non-official – with the US will be removed.

Khalilur Rahman, the chief adviser’s high representative, said he spoke to the Bangladeshi ambassador in Washington on Saturday, who had met with the USTR. “The signals received from that office align with Bangladesh’s current approach," he noted, expressing optimism that a response strategy will be finalised within one to two days.

Planning adviser Wahiduddin Mahmud said major economic powers, including China, are also responding to US reciprocal tariffs, and it remains uncertain how the situation will evolve. He assured of efforts to safeguard the country’s prime export product, readymade garments.​

 

[Bilal9]

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

I hope they come up with some reductions in tariffs for US products, we use plenty of them anyway, Cotton, Soybean oil, and even agri products like processed fruit products.

Once we reduce tariffs, they will reduce reciprocal tariffs as well.

 

[Saif]

Yunus requests Trump to hold up new tariff regime for three months

Chief Adviser Professor Muhammad Yunus on Monday sent a letter to US President Donald Trump requesting him to postpone the application of a 37 per cent tariff on Bangladeshi products in the US market. Chief Adviser Prof Yunus has addressed a letter to US President Donald J Trump requesting him to

thefinancialexpress.com.bd

Yunus requests Trump to hold up new tariff regime for three months
BSS
Published :
Apr 07, 2025 17:48
Updated :
Apr 07, 2025 17:48

Chief Adviser Professor Muhammad Yunus on Monday sent a letter to US President Donald Trump requesting him to postpone the application of a 37 per cent tariff on Bangladeshi products in the US market.

Chief Adviser Prof Yunus has addressed a letter to US President Donald J Trump requesting him to postpone the application of US reciprocal tariff measures on Bangladesh for three months to allow the interim government to smoothly implement its initiative to substantially increase US exports to Bangladesh, said a statement issued by the Chief Adviser’s Press Wing.

"We are the first country to take such a pro-active initiative", he said in his letter, citing the visit of High Representative Dr Khalilur Rahman to Washington DC in February.

Ever since, the two sides have been working closely to identify specific actions.

Bangladesh is also the first country to enter into a multi-year agreement to import liquefied natural gas from the US.

The centrepiece of Bangladesh's actions is to significantly increase imports of US agricultural products such as cotton, wheat, corn and soybean, which will offer benefits to US farmers.

Bangladesh has the lowest tariff on most US exports in the South Asian region.

Chief Adviser Prof Yunus indicated further tariff cuts on US products are being fashioned, including top US export items such as gas turbines, semiconductors and medical equipment.

Bangladesh will build dedicated duty free bonded warehouses for cotton to improve US market.

"We are eliminating certain testing requirements, rationalising packaging, labelling and certification requirements and undertaking trade facilitation measures such as simplifying customs procedures and standards," the Chief Adviser added.

"Bangladesh will take all necessary actions to fully support your trade agenda", Prof Yunus assured President Trump.

A separate letter detailing the actions of Bangladesh will be sent by the Commerce Advisor to the US Trade Representative soon, the statement read.​

 

[Saif]

From tariffs to triumph

The recent decision of the United States (US) government to impose a 37 per cent 'discounted reciprocal tariff' on Bangladeshi exports has reverberated with shock through the country's business and policy circles. As per a chart published by the White House, Bangladesh is reported to levy an effect

thefinancialexpress.com.bd

From tariffs to triumph
Recalibrating Bangladesh-U.S. trade for mutual benefit
Md Sahidul Islam
Published :
Apr 07, 2025 23:56
Updated :
Apr 07, 2025 23:56

The recent decision of the United States (US) government to impose a 37 per cent 'discounted reciprocal tariff' on Bangladeshi exports has reverberated with shock through the country's business and policy circles. As per a chart published by the White House, Bangladesh is reported to levy an effective 74 per cent tariff on American goods, ranking it among the highest US trading partners.

This development, part of Trump's "Liberation Day" trade policy, aims to counter what the administration describes as unfair trade practices and protectionist barriers against American exports. Under the new framework, the US has introduced a baseline 10 per cent tariff on all imports, with significantly higher rates for countries accused of currency manipulation or high trade barriers.

This poses a serious challenge for Bangladesh. The US is our single largest export destination, particularly for the RMG sector, which contributes more than 80 per cent of total exports. A 37 per cent tariff could significantly erode our competitive edge, especially as key competitors like India (26 per cent), Pakistan (29 per cent), and Vietnam (46 per cent) face varying but comparatively lower tariff rates.

To effectively tackle this challenge, Bangladesh must adopt a proactive, strategic approach. This involves leveraging both diplomacy and trade policy adjustments to mitigate risks and enhance economic ties with the US.

A key step in this strategy would be to revisit tariff structures on US imports to create room for negotiation. Currently, Bangladesh imposes a 5 per cent Advance Income Tax (AIT) on US raw cotton, a critical input for the textile industry. Reducing this tax to zero per cent -while simultaneously seeking duty-free access for garments manufactured using US cotton-could be a pragmatic move.

This approach, if successful, could lead to a win-win situation. US exporters, especially cotton producers, would gain a larger, more reliable market in Bangladesh. Bangladeshi apparel manufacturers, already grappling with high production costs, would regain a competitive edge in the US market, fostering a sense of hope and optimism.

Additionally, Bangladesh already offers zero duty on aircraft parts and 5 per cent on scrap metals, with low tariffs on LPG and energy imports. Extending a zero-duty framework to key US exports-such as cotton and high-tech equipment-could position Bangladesh as a priority partner under the US "reciprocal tariff" doctrine.

Trade policies are rarely set in stone, and diplomacy plays a crucial role in shaping tariff negotiations. To counteract the new tariff structure, Bangladesh must: (a) initiate immediate diplomatic engagements with US trade representatives to argue for a fairer framework; (b) strengthen bilateral trade cooperation by highlighting Bangladesh's contributions to the US supply chain; (c) leverage regional alliances-especially within South Asia-to advocate for more balanced US trade policies; and (d) explore alternative trade routes and diversify export markets to reduce over-reliance on the US market.

While the 37 per cent tariff poses a significant challenge, it also presents an opportunity to reshape Bangladesh-US trade relations. If approached strategically, this moment could lead to a more balanced, resilient, and sustainable trade framework, securing long-term economic stability for Bangladesh.

In times of adversity lie opportunities. Now is the time for decisive, creative, and courageous action.

Md. Sahidul Islam is Head of Business, Corporate Head Office, Shimanto Bank PLC.​

 

[Saif]

Bangladesh offers zero tariffs on 100 more US goods to narrow trade gap

Commerce adviser sends a letter to US trade representative

www.thedailystar.net

Bangladesh offers zero tariffs on 100 more US goods to narrow trade gap
Commerce adviser sends a letter to US trade representative

Bangladesh is ready to offer zero import tariffs for another 100 US goods in addition to the existing 190, in order to minimise the trade gap and address Trump's reciprocal tariffs, according to a letter from Commerce Adviser Sk. Bashir Uddin sent to US Trade Representative Jamieson Greer today.

Bangladesh is one of the largest importers of US cotton, manufactures readymade garments, and faces higher tariffs on its exports to the United States, the adviser wrote in the letter.

"Our tariff schedule contains 190 product lines with zero tariffs, and another 100 product lines are being considered for inclusion in the zero-tariff schedule."

"Since the withdrawal of preferential access for Bangladeshi exports to the US, your esteemed government has been imposing a 15 percent tariff on all goods from Bangladesh, while we impose a weighted average tariff on US products of 6.10 percent—where raw cotton and steel scrap face tariff rates of 0 percent and 1 percent respectively," the adviser said.​

 

[Saif]

Proper steps needed to address the US tariff crisis

Bold diplomacy, united efforts essential

www.thedailystar.net

Proper steps needed to address the US tariff crisis
Bold diplomacy, united efforts essential

VISUAL: STAR

We welcome the government's initiative to send two letters to the US administration—one to President Donald Trump and another to the US government's lead trade negotiation office—in response to its new "reciprocal" tariff regime imposed on all its trading partners. According to a report by this daily, the letters will outline policy measures to reduce bilateral trade imbalances that triggered the levying of a 37 percent tariff on imports from Bangladesh. This comes amid fears that the new policy, effective from April 9, may strike a blow to our export-based economy, particularly the garments sector, for which the US is the single largest market. As the world rushes to the negotiating table to deal with this latest setback, we must do the same to protect our industries and retain our competitiveness.

While talking to The Daily Star following a high-level meeting at the finance ministry, government officials and industry leaders appeared optimistic that if proper measures are taken, Bangladesh may not only weather this storm but also turn the challenge into an opportunity to diversify exports, streamline trade practices, and strengthen its position in the US market. This confidence comes partly from the fact that most regional trade rivals of Bangladesh face a heavier blow. In 2024, Bangladesh shipped $7.4 billion worth of garments to the US, making it the third-largest apparel supplier after China and Vietnam. Now, under the new US policy, China's total apparel tariff could reach 65.5 percent, while Vietnam's may rise to 57.5 percent. However, there remains doubt about whether the 37 percent tariff imposed on Bangladesh will replace existing duties or be added on top of them. If it is an additional tariff, the total duty on our garments could rise to 48.56 percent—up from the current average of 11.56 percent. We, therefore, must prepare for the worst-case scenario, although we will not know for sure until April 9.

Our response must be swift, strategic, and with the broader interests of the nation, including workers, in mind. One strategy that could prove effective is requesting a delay in the implementation of the new tariffs. Vietnam has already sought at least 45 days of relief from the US to allow room for negotiation and adjustment, even offering to reduce all tariffs on US imports to zero. Bangladesh should not shy away from making similar moves to adjust trade balances. While the commerce adviser has said that a deferral is unlikely at this stage, persistence may lead to rewards. Even a limited extension could give our exporters time to reorganise and adjust pricing strategies.

In this regard, we may also consider engaging experienced US-based lobbyists to support our case. Experts have also stressed the importance of expanding US imports of goods and services, broadening our export base beyond RMG, expanding exports to other markets beyond the US, and removing all tariff and non-tariff barriers to encourage greater bilateral trade.​

 

[Saif]

Bangladesh offers zero tariffs on 100 more US goods to narrow trade gap

Commerce adviser sends a letter to US trade representative

www.thedailystar.net

Bangladesh offers zero tariffs on 100 more US goods to narrow trade gap
Commerce adviser sends a letter to US trade representative

Bangladesh is ready to offer zero import tariffs for another 100 US goods in addition to the existing 190, in order to minimise the trade gap and address Trump's reciprocal tariffs, according to a letter from Commerce Adviser Sk. Bashir Uddin sent to US Trade Representative Jamieson Greer today.

Bangladesh is one of the largest importers of US cotton, manufactures readymade garments, and faces higher tariffs on its exports to the United States, the adviser wrote in the letter.

"Our tariff schedule contains 190 product lines with zero tariffs, and another 100 product lines are being considered for inclusion in the zero-tariff schedule."

"Since the withdrawal of preferential access for Bangladeshi exports to the US, your esteemed government has been imposing a 15 percent tariff on all goods from Bangladesh, while we impose a weighted average tariff on US products of 6.10 percent—where raw cotton and steel scrap face tariff rates of 0 percent and 1 percent respectively," the adviser said.​

 

[Bilal9]

Bangladesh escapes tariff imposition for US exports for 90 days.

 

[Saif]

Chief Adviser thanks Trump for pausing ‘reciprocal tariffs’

Chief Adviser Muhammad Yunus has expressed his gratitude to the US President Donald Trump for declaring a complete halt on all “reciprocal tariffs” for 90 days, according to a UNB report. “Thank you, Mr. President, (@POTUS) for responding positively to our request for 9

thefinancialexpress.com.bd

Chief Adviser thanks Trump for pausing ‘reciprocal tariffs’
FE ONLINE DESK
Published :
Apr 10, 2025 00:33
Updated :
Apr 10, 2025 00:33

Chief Adviser Muhammad Yunus has expressed his gratitude to the US President Donald Trump for declaring a complete halt on all “reciprocal tariffs” for 90 days, according to a UNB report.

“Thank you, Mr. President, (@POTUS) for responding positively to our request for 90-day pause on tariffs. We will continue to work with your administration in support of your trade agenda,” Chief Adviser's Press Secretary Shafiqul Alam said quoting Prof Yunus.

In a post on Truth Social on Wednesday, Trump stated that he had “authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.”

“Due to the lack of respect China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately,” Trump wrote on his social media.​

 

[Saif]

Trump announces 90-day pause on tariffs except for China

President Donald Trump announced a complete three-month pause on all the “reciprocal” tariffs that went into effect at midnight, with the exception of China, a stunning reversal from a president who had insisted historically high tariffs were here to stay. But enormous tariffs will rem

thefinancialexpress.com.bd

Trump announces 90-day pause on tariffs except for China
FE ONLINE DESK
Published :
Apr 09, 2025 23:55
Updated :
Apr 10, 2025 00:40

President Donald Trump announced a complete three-month pause on all the “reciprocal” tariffs that went into effect at midnight, with the exception of China, a stunning reversal from a president who had insisted historically high tariffs were here to stay.

But enormous tariffs will remain on China, the world’s second-largest economy. In fact, Trump said they will be increased to 125% from 104% after China announced additional retaliatory tariffs against the United States earlier on Wednesday, according to a CNN report.

“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately,” Trump said in his social media post. “At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable,” he wrote.

Wall Street breathed a sign of relief, however, that Trump was backing down on other extreme trade measures. Stocks rallied sharply on the news – even though the 10% universal tariff on all imports coming into the United States remained in effect.

Trump in a Truth Social post Wednesday said he has “authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.”

Shortly after the announcement, Treasury Secretary Scott Bessent said the pause was part of “his strategy all along.” But he also said that Trump had “great courage to stay the course until this moment.”

CNN previously reported that Bessent traveled to Mar-a-Lago on Sunday to discuss the tariffs with Trump, encouraging him to focus on an endgame of reaching new deals with a variety of countries.

Bessent said Trump would be “personally involved” in all the discussions as he seeks out concessions.

“No one creates leverage for himself like President Trump,” Bessent said.

The message sought to cast to other countries was: “Do not retaliate and you will be rewarded,” he said, adding that the move “signals that President Trump cares about trade and that we want to negotiate in good faith.”

He and and Commerce Secretary Howard Lutnick were with Trump when he sent his message on Truth Social, Lutnick confirmed on a post on X.

“Scott Bessent and I sat with the President while he wrote one of the most extraordinary Truth posts of his Presidency,” Lutnick said. “The world is ready to work with President Trump to fix global trade, and China has chosen the opposite direction.”​

 

[Saif]

Will US tariffs backfire in Bangladesh?

THE relationship between the United States and Bangladesh has long been a complex interplay of strategic interests, democratic ideals, and economic imperatives. However, the imposition of tariffs under the Trump administration and the...

www.newagebd.net

Will US tariffs backfire in Bangladesh?
by Shafi Mostofa 12 April, 2025, 00:00

Workers are engaged in sewing stations in an apparel factory at Savar, on the outskirts of Dhaka, on April 9. | Agence France-Presse/Munir Uz Zaman

THE relationship between the United States and Bangladesh has long been a complex interplay of strategic interests, democratic ideals, and economic imperatives. However, the imposition of tariffs under the Trump administration and the subsequent geopolitical manoeuvring have introduced new tensions and contradictions into this dynamic. The US approach to Bangladesh — particularly its stance towards Sheikh Hasina’s government — has oscillated between support, pressure, and reluctant accommodation, reflecting broader strategic ambiguities. Meanwhile, the lack of sustained soft power engagement and the economic fallout from tariffs risk pushing Bangladesh further into China’s orbit, a trend Beijing has been all too eager to exploit.

The US’s approach to Sheikh Hasina’s government has been marked by inconsistency. Initially, Washington viewed Hasina as a secular counterweight to Islamist forces in Bangladesh, particularly given her government’s crackdown on extremist groups. However, as her administration grew increasingly authoritarian — marked by disputed elections, suppression of dissent, and human rights violations — the US began to distance itself. The Biden administration’s emphasis on democracy and human rights further strained relations, culminating in sanctions against Bangladesh’s Rapid Action Battalion and the exclusion of Dhaka from the Democracy Summit.

Yet, this pressure has not been linear. Reports suggest that the US hesitated to impose visa restrictions on Awami League officials, reportedly after reassurances from India, which views Hasina as a bulwark against Chinese influence in South Asia. This inconsistency underscores a fundamental contradiction in US policy: while Washington publicly champions democratic norms, it often subordinates these principles to geopolitical expediency. The result is a mixed message — one that weakens US credibility and fuels perceptions of hypocrisy in Dhaka.

However, the recent student-led revolution in Bangladesh has brought a dramatic shift in political leadership, replacing the Hasina regime with an interim government led by Dr Muhammad Yunus. Given Yunus’s strong connections with the Western world, particularly the United States, many anticipated a reinvigoration of US-Bangladesh relations. However, this prospect now faces significant challenges following the Trump administration’s sudden imposition of a 37 per cent tariff on Bangladeshi exports. The US is a key market for Bangladesh’s ready-made garments, with annual exports worth $8.4 billion, and any decline could significantly hurt the country’s overall export earnings. Though not aimed specifically at Bangladesh, experts warn that new US tariffs may raise garment prices, reduce competitiveness, and divert buyers to other suppliers, leading to lower export revenue for Bangladesh. This move risks undermining the economic foundation of the new government, potentially pushing Dhaka to explore more reliable and less punitive economic partnerships.

In this context, China appears poised to deepen its engagement with Bangladesh. Beijing has already signalled its willingness to step in with a series of strategic economic offers, including zero-tariff access for Bangladeshi goods until 2028, proposals for a free trade agreement and investment agreement, and major investments in infrastructure and industrial zones. As the US’s trade policy isolates Dhaka at a critical juncture, China’s timely overtures provide both financial lifelines and political reassurance. This convergence of US economic pressure and Chinese opportunity could accelerate Bangladesh’s pivot towards Beijing, shifting the balance of regional influence and embedding Bangladesh more firmly within China’s broader geopolitical and economic architecture.

That said, the US has often relied on India to mediate its relationship with Bangladesh, given New Delhi’s historical and cultural ties with Dhaka. However, this strategy is increasingly fraught. Anti-India sentiment in Bangladesh — fuelled by disputes over water sharing, Muslim minority persecution in India, border killings, and perceived Indian interference in domestic politics — limits New Delhi’s ability to act as an effective intermediary.

Furthermore, India’s own economic restrictions, such as export bans on essential commodities during crises, have strained its image in Bangladesh. By outsourcing its Bangladesh policy to India, the US risks being perceived as complicit in New Delhi’s unpopular manoeuvres, undermining its own influence. Instead, Washington should engage Dhaka directly, leveraging its own diplomatic and economic tools to build a partnership independent of Indian mediation.

To stabilise relations with Bangladesh, the US can consider adopting a more nuanced and proactive approach. The US should reconsider the Trump-era tariffs and explore alternatives such as a bilateral FTA or GSP Plus status. Economic engagement, rather than punitive measures, would provide Bangladesh with tangible reasons to align with the US. Washington can engage Dhaka on its own terms, rather than relying on India. This includes high-level diplomatic visits, cultural exchanges, and development partnerships that address Bangladesh’s priorities, such as climate resilience and energy security. Strengthening educational ties (through scholarships and university partnerships) and people-to-people exchanges can rebuild goodwill.

Taking stock, the imposition of steep US tariffs on Bangladeshi exports — amid a post-revolution leadership shift — risks undermining Washington’s influence at a critical geopolitical juncture. While the interim government under Dr Muhammad Yunus was expected to strengthen ties with the West, the punitive trade measure could instead accelerate Bangladesh’s pivot towards China, which is offering generous, strategically timed economic incentives. These developments expose a long-standing inconsistency in US policy towards Bangladesh: a rhetoric of democratic values often subordinated to geopolitical interests and reliance on India’s mediation. As anti-India sentiment grows and China steps in with infrastructure funding, tariff relief, and diplomatic support, the US risks losing ground in South Asia’s strategic equation. To restore its relevance, Washington must engage Dhaka directly — through fair trade, development cooperation, and respect for Bangladesh’s agency — rather than isolating it through protectionism or delegating its diplomacy to New Delhi.

Dr Shafi Mostofa, a post-doctoral research fellow at the Democracy Institute, Central European University, Hungary, is an associate professor of world religions and culture at the University of Dhaka.​

 

[Saif]

Bangladesh eyes opportunity as Trump imposes high tariffs on Chinese goods

US President Donald Trump has been steadily increasing tariffs on Chinese goods in the American market. As of last Thursday, the US has imposed up to 145 per cent tariffs on Chinese products. In response, China has imposed 125 per cent retaliatory tariffs. This ongoing trade war between the US...

en.prothomalo.com

Bangladesh eyes opportunity as Trump imposes high tariffs on Chinese goods
Shuvonkar Karmokar Dhaka
Published: 12 Apr 2025, 22: 34

This ongoing trade war between the US and China presents new opportunities for Bangladesh and other competing countries.

US President Donald Trump has been steadily increasing tariffs on Chinese goods in the American market. As of last Thursday, the US has imposed up to 145 per cent tariffs on Chinese products. In response, China has imposed 125 per cent retaliatory tariffs. This ongoing trade war between the US and China presents new opportunities for Bangladesh and other competing countries.

According to Bangladeshi economists and exporters, Chinese products will lose their competitive edge in the US market due to the high tariffs. As a result, American buyers are expected to shift their orders away from China, along with a significant volume of investment. To attract this shifting business, both local and foreign investment in Bangladesh will be required. Additionally, the government must take swift and effective steps to improve the ease of doing business.

President Trump has imposed a minimum 10 per cent reciprocal tariffs on products from various countries to reduce the US trade deficit. In total, products from 57 countries now face increased tariffs. Although Trump announced a 90-day suspension of retaliatory tariffs last Wednesday, the minimum 10 per cent tariff remains in effect for all countries. Meanwhile, the US–China trade war continues to escalate. It began on 2 April with a 34 per cent tariff on Chinese goods, which has since increased to 145 per cent as of last Thursday. In retaliation, China now imposes 125 per cent tariffs on American goods.

According to the World Trade Organization (WTO), this ongoing trade war could reduce bilateral trade between the US and China by up to 80 per cent, which accounts for 3 per cent of global trade. WTO Director-General Ngozi Okonjo-Iweala warned that the trade war could severely damage the global economy.

According to the US Census Bureau, in 2024, bilateral trade between China and the US totaled $582.4 billion, of which $438.9 billion were Chinese exports to the US, and $143.5 billion were American exports to China.

By contrast with China, Bangladesh’s trade volume with the US is relatively small. In 2024, bilateral trade was $10.6 billion, with Bangladesh exporting $8.4 billion worth of goods to the US and importing $2.2 billion.

Speaking to Prothom Alo, MA Razzaque, chairman of the private research organisation Research and Policy Integration for Development (RAPID), said, “The trade war between the United States and China will create instability in the global market. In the short term, this may lead to a decline in product demand. However, in the medium and long term, a golden opportunity awaits Bangladesh, as both business and investment are expected to shift away from China. No matter how much China negotiates in the coming days, the additional tariffs in the US market will not be eliminated."

What are the opportunities for Bangladesh?

China is currently the top exporter of ready-made garments to the US, followed by Vietnam, Bangladesh, India, and Indonesia. The US is Bangladesh’s largest single export market, with 87 per cent of Bangladesh’s exports to the US being garments.

Under the Trump administration, a 37 per cent retaliatory tariff was previously imposed on Bangladeshi goods, raising the total tariff to 52 per cent. With the suspension of retaliatory tariffs, for the next three months the tariff will be reduced to a minimum of 10 per cent, making the average effective tariff about 25 per cent. In comparison, Chinese goods are now facing 145 per cent tariffs.

Because of these high tariffs, US buyers began canceling or suspending orders for Chinese-made garments, leather goods, and other products. Now, those orders are returning, and buyers have started inquiring about placing new orders in other countries.

On Thursday, Shovon Islam, Managing Director of Sparrow Group of Industries, told Prothom Alo: "We’ve received several emails from buyers looking to shift their orders away from China. At this tariff rate, US brands simply can’t afford to import apparel from China."

Exporters say that following the imposition of high tariffs, US buyer companies have started suspending orders for Chinese-made garments. Some companies are even canceling shipments that are currently en route from China by sea.

Team Group managing director and BGMEA former vice president Abdullah Hil Rakib considers the high tariffs on Chinese goods a major opportunity for Bangladesh.

He said, “Other competing countries will also try to take China’s business. But we have additional production capacity that many of them don’t. If we execute properly, the next 10 years could be full of potential.”

He added that Chinese exporters are now targeting the European Union (EU) market and offering lower prices due to heavy government subsidies. This could increase competition for Bangladeshi firms focused on the EU.

Analysis of data from UN Comtrade, China Customs, and the US International Trade Commission (USITC) shows that the top US imports from China include: electronics, home appliances, apparel, medical supplies, wood products, construction equipment, electrical machinery, batteries, chemicals, processed agricultural goods, transport equipment and semiconductors.

According to the Bangladesh National Board of Revenue (NBR), the top exports from Bangladesh to the US in fiscal year 2023–24 were: ready-made garments, caps, leather shoes, home textiles, wigs and leather products.

When asked about the matter, Sharif Zahir, managing director of Ananta Group, one of Bangladesh’s leading garment exporters, told Prothom Alo: “Orders for high-end apparel previously exported from China are shifting. We must invest in building capacity for such products. Investments will also shift from China, and a portion of that can come to Bangladesh. But to secure those investments, we should prioritise specialised garments, synthetic fibers, electronics, footwear, and toys. Above all, we must actively engage with the US administration to ensure Bangladesh is exempt from retaliatory tariffs.”​

 

[Saif]

Utilise 90-day pause on US tariffs on export: experts

Economists and industry insiders urged the government to use the 90-day hiatus in the United States administration’s tariffs on exporting items to most countries, including Bangladesh.

www.newagebd.net

Utilise 90-day pause on US tariffs on export: experts
Staff Correspondent 12 April, 2025, 23:28

Experts attend a roundtable titled ‘US Tariffs on Bangladesh’s Exports: Reciprocal Strategies and the Way Forward for Negotiations’ at Gulshan Club in Dhaka on Saturday. | New Age photo

Economists and industry insiders urged the government to use the 90-day hiatus in the United States administration’s tariffs on exporting items to most countries, including Bangladesh.

They also said that it is unclear what will happen after 90 days, and this pause is not a solution, so the government must go for a long-term, sustainable solution.

They were speaking at a roundtable titled ‘US Tariffs on Bangladesh’s Exports: Reciprocal Strategies and the Way Forward for Negotiations’, which was organised by the Bangladesh Garment Manufacturers and Exporters Association along with trade bodies from textiles, pharmaceuticals, plastics, and other sectors in the capital on Saturday.

In his speech, M Masrur Reaz, chairman of the Policy Exchange Bangladesh, said that the government should take action and utilize the 90-day pause.

‘If we couldn’t seize the opportunity, we have to ring scramble alert again after 90 days. Through negotiation, we have to know the expectations of the US government regarding Bangladesh, their priorities, and their specific asks on trade surplus and tariff,’ he added.

He also asked the government to set the offerings if they want to offer to the US government.

‘We are in an advantageous position regarding cotton imports, as our major competitors like India and Pakistan rely on their cotton, whereas we import it,’ he added.

He said that Bangladesh has to initiate some strategic offerings, as the US must import from Bangladesh, thanks to high product value in Vietnam and China.

Through coordination mechanisms and dialogue, Bangladesh can benefit from these geoeconomic issues.

He also urged the government to define concisely how US tariffs impact the country’s economy, not fully trust the US administration, and seek market-based and content-based solutions.

If Bangladesh wants to import more cotton from the US, it must establish proper infrastructure and a free zone for US cotton in the ports.

Muhibuzzaman, chairman of ACI Pharmaceuticals, said that the new tariff will hit the country’s major industries and value chain. However, as the US has decided to impose a 90-day pause, the government has the time to negotiate, and it should do so strategically.

He also stated that the pharmaceutical industry will face a significant challenge in the form of LDC graduation, which could negatively impact the sector. Without the generic, Bangladeshi manufacturers won’t be able to produce new products, he added.

In his speech, Md Anwar Hossain, administrator of the Bangladesh Garment Manufacturers and Exporters Association, said that the government is working on three fronts: tariff issues, LDC graduation, and transshipment through India.

‘However, the businesses also should help the government by providin required data. We should work through both on diplomatic channels and policy fronts,’ he added.

He also said that the industry and government work together for sustainability and compliance.

Anwar-Ul Alam Chowdhury Parvez urged the government to defer the LDC graduation by three years as the industries are yet to prepare.

‘The government should resolve the issues related the NBR, gas and energy supply to attract investment,’ he added.

He urged the government to take immediate action through diplomacy and negotiations regarding the US tariff.

Hafizur Rahman, administrator of the Federation of Bangladesh Chambers of Commerce and Industry, said that Bangladesh should focus on reducing its trade gap with the US and must identify the US expectations of Bangladesh.

‘Vietnam and India might be signing an FTA with the USA soon, so Bangladesh should also focus on rationalizing trade and negotiations,’ he added, urging the government not to take any rigid decision.

Ganosamhati Andolan chief coordinator Zonayed Saki said that signing an FTA with the USA is important along with attempt to improve bilateral trade relations.

He also said as Bangladesh is going to be graduated from the LDC, the country must focus on labour law, labour situation, compliance and environmental policy.

Shamim Ahmed, the president of the Bangladesh Plastic Goods Manufacturers and Exporters Association, also spoke at the event.

BTMA president Showkat Aziz Russell moderated the event.​

 

[Saif]

China to collaborate with BD, EU, others to counter Trump tariff

China wants to address the challenges of the ‘reciprocal tariff’ imposed by the Trump administration in collaboration with other countries, including Bangladesh and the European Union, said Chinese Ambassador in Dhaka Yao Wen on Sunday. Terming the US tariff move ‘a crazy

thefinancialexpress.com.bd

China to collaborate with BD, EU, others to counter Trump tariff
FE ONLINE REPORT
Published :
Apr 13, 2025 19:20
Updated :
Apr 13, 2025 19:27

China wants to address the challenges of the ‘reciprocal tariff’ imposed by the Trump administration in collaboration with other countries, including Bangladesh and the European Union, said Chinese Ambassador in Dhaka Yao Wen on Sunday.

Terming the US tariff move ‘a crazy’ decision, which jeopardises the international trading order, he said China is looking forward to Bangladesh and others, including the European Union, working together to stop the turmoil and to bring the matter to the right track, to ‘find the right way out’.

“So, let's work together,” the ambassador said while addressing a seminar on ‘Reassessing Sino-Bangla relations: Chief Adviser’s landmark visit’ organised by the China-South Asia Centre for Socio Cultural Studies (CSCSS) of the South Asian Institue of Policy and Governance (SIPG), North South University in the city.

National Security Adviser, and High Representative to the Chief Adviser Khalilur Rahman was the chief guest in the seminar, moderated by Tawfiq M Haque, director of the SIPG.

Referring to the Bangladesh government’s invitation to the Chinese companies for involving in the Teesta River water management project, he said his country has been involved in many game-changing projects in Bangladesh, and now China is ready for the Teesta Project also.

“The relations between Bangladesh and China are not focused on any particular party or government but aim to serve the interests of the people”, the Chinese envoy spelt out.

About the US tariff, he said it has hugely disrupted the current multilateral Free Trade Agreement and is against international law.

But he made it clear China hits back against the US move and imposed increased tariffs against US exports in a similar fashion.

“We'll fight back. We're fighting for free trade. We're fighting for the balance and justice of the world. We're maintaining this current international trade agreement.”

However, he mentioned that China is also for negotiation.

“China is ready if the US wants to talk with us. China will not reject any talk. But talks are possible if they are based on mutual trust. China will not talk to someone. So China will wait and see what the next move taken over by the US."

But until this China continues to fight, not only for themselves but for the world, he said, adding that “We are taking this responsibility”.

Mr Wen emphasised the importance of economic cooperation between Bangladesh and China with a focus on deeper integration and mutual support and described the chief adviser’s visit to China as a milestone, highlighting the political message of mutual support between the two countries.

“The visit is seen as defining the future direction of cooperation, with increased mutual trust and discussions on terror issues. The one China principle is reiterated, opposing independence for Taiwan, and Bangladesh's expected support for China's stance on the issue,” he added.

He noted that the upcoming visit of a delegation from China will focus on educational and healthcare cooperation.

“Next week, the government of Yunnan will visit Bangladesh, and this time they'll do two very important missions for the visit. One is enhanced educational cooperation. The other is on healthcare. So you must be aware that we already opened four hospitals in the province for the treatment of the patients from Bangladesh. The first batch of patients only went there. So, they are encouraged by the treatment provided by these four hospitals. So it is just our first step,” Mr Wen said.

The Chinese delegation’s visit also aims to open more Chinese hospitals in Bangladesh and enhance vocational educational training through collaboration with North South University, he said, adding that Chinese companies plan to establish a regional training centre in Bangladesh to train local labourers for projects in the Middle East and Europe.​

 

[Saif]

US wants to know the steps Bangladesh will take

The United States has sought to know what steps Bangladesh wants to take to remove the tariff and non-tariff barriers to importing of US goods and to reduce the trade deficit.

en.prothomalo.com

Commerce ministry-USTR meeting
US wants to know the steps Bangladesh will take
Diplomatic CorrespondentDhaka
Published: 13 Apr 2025, 16: 02

The United States has sought to know what steps Bangladesh would take to remove the tariff and non-tariff barriers to importing the US goods and to reduce the trade deficit.

The United States Trade Representative (USTR) office in a meeting with the commerce ministry of Bangladesh asked to know about Bangladesh’s action plan.

The meeting between USTR and the commerce ministry was held last Wednesday. Officials from both countries attended the virtual meeting.

Commerce secretary Mahbubur Rahman told Prothom Alo Saturday night, “We had the meeting with USTR before President Trump suspended the decision to impose reciprocal tariff for three months. There, we told them about our efforts to remove all the non-tariff barriers.”

“They asked to get an updated picture on the steps from our side, discussed during the last TICFA (Trade and Investment Cooperation Forum Agreement) meeting. A report will be sent to them within a week,” he added.

US President Donald Trump had imposed a reciprocal tariff on the goods from Bangladesh along with 60 other countries and regions of the world. Tariffs were imposed on many countries at a high rate with a minimum tariff rate of 10 per cent. A 37 per cent tariff was imposed on Bangladeshi products.

However, president Trump suspended all the tariffs except for 10 per cent for three months in the early hours of Thursday (Bangladesh time).

Earlier, different countries contacted the Trump administration for discussion and promised to take steps for increasing the import of US products. Trump has imposed higher tariffs on those countries where US exports are low but imports are high.

Chief adviser of the interim government Professor Muhammad Yunus had sent a letter to President Donald Trump on 7 April with the request of suspending the new tariffs for three months.

Meanwhile, commerce adviser Sk Bashir Uddin sent a letter to United States Trade Representative (USTR) Jamieson Greer on the same day. The Bangladesh Embassy in Washington delivered those two letters to the White House and to the USTR office on the same day.

The virtual meeting between the USTR and commerce ministry officials was held on Wednesday, two days after Bangladesh sent those letters.

Diplomatic sources stated that in the context of the two letters from Bangladesh, the US asked to know specifically what steps Bangladesh wants to take to eliminate the trade deficit with the US. To put it in simple words, the US is interested in knowing Bangladesh’s action plan to reduce the trade deficit between the two countries.

The commerce adviser stated in the letter sent to the USTR that 190 items on Bangladesh’s tariff list are duty-free with zero per cent tariff. And, there are plans to add another 100 items to the duty-free list.

The letter also mentioned that Bangladesh has been paying a 15 per cent tariff on all items exported to the US since the US government withdrew the generalised system of preferences (GSP) facility on Bangladeshi goods.

On the other hand there is an average of 6.1 per cent tariff on products imported from the US. Of that, there’s no tariff on importing cotton and only 1 per cent tariff on importing scrap iron, it stated.

It was also stated in the letter that Bangladesh has taken up various reforming initiatives to reduce tariff rates, remove non-tariff barriers and to make mutual trade more profitable. Those initiatives include updating import policies, simplifying the customs procedures, protecting intellectual property rights, trademark and patent protection, and so on.

Meanwhile, Deputy Assistant Secretary in the Bureau of South and Central Asian Affairs (SCA) in the US, Nicole Ann Chulick is arriving in Dhaka next Tuesday on a four-day official visit.

After Donald Trump took oath as the US president on 20 January, Chulick is the first senior-level representative of the US to come to visit Bangladesh.

Several senior officials from the foreign ministry stated that Nicole Ann Chulick will discuss various aspects of the relationship between the two countries with top-level representatives of the interim government during her visit to Bangladesh. The issue of Trump’s reciprocal tariffs is expected to come up in the discussion.

Chulick may discuss the reform process of the interim government and talk especially about US support for the democratic transition.​

 

[Saif]

undefined | The Financial Express

thefinancialexpress.com.bd

Bangladesh must utilise 90-day US tariff pause
AmCham dialogue told

FE REPORT
Published :
Apr 14, 2025 08:56
Updated :
Apr 14, 2025 08:56

(From left) Md. Fazlul Hoque, former president of BKMEA; John Fay, Commercial Counselor, US Embassy, Dhaka; Syed Nasim Manzur, Managing Director of Apex Footwear Ltd. and President of LFMEAB; Syed Ershad Ahmed, President of AmCham Bangladesh; Mohammad Belal Hossain Chowdhury, Member (VAT Implementation & IT), NBR; Eric M. Walker, Vice President of AmCham Bangladesh; and Al-Mamun M Rashel, Treasurer of AmCham Bangladesh; seen at the AmCham Dialogue held at a city hotel on Sunday.

Bangladesh must take urgent and proactive measures strategically leveraging the 90-day US tariff respite otherwise it might be at risk of losing large volume of seasonal work orders for next holidays.

The county also has to inform the US about the measures it is going to take addressing the concerns related to reduce high import tariffs, how to increase import especially US cotton and strengthening the supply chain by setting up bonded warehouse, protection of intellectual property.

The remarks and suggestions came at a dialogue titled 'US Tariffs-Impact and Way Forward' organised by AmCham (American Chamber of Commerce in Bangladesh) to share the concerns and suggestions regarding the recently imposed US tariffs.

Businesses and exporters also suggested including the private sector in the negotiations process.

Speaking at the dialogue, Syed Nasim Manzur, president, Leathergoods and Footwear Manufacturers & Exporters Association of Bangladesh (LFMEAB), expressed concern over the new US tariffs regime.

"We should not become complacent of 90 days tariff pause. Bangladesh has to inform the US fast what it is going to do."

Along with apparel there are other goods export to the US including footwear and ceramics, he said most of Bangladesh's exportable products are seasonal based on fashion cycle.

When the 90 days tariffs hold come to an end, the season for Christmas holidays work orders-the biggest one-- would start, he said, explaining that if there is no clarity of products price during that time, work orders for Christmas and holidays would not be fixed.

"We will miss the season and loose the cycle. We can't sleep for a day," he, also managing director of Apex Footwear Limited, said warning that they would not survive without the holiday season work orders.

Some of the small and medium-sized factories have already shipments in ports on hold and if the proceeds do not come in, their ability to manage cash flow, wage payment to workers would be disrupted that might create fresh labour unrest in the industrial zones like Ashulia and Gazipur, he noted. While diversification is important he said it's not enough.

He noted the NBR is reviewing tariffs on 20 low-revenue items (Around $100 million) and addressing non-tariff barriers.

Despite challenges, he sees strong potential, with a key USTR meeting set for April 21.

He highlighted non-tariff barriers, including the need for 24/7 customs operations and stronger IPR enforcement.

With the updated Patent Act, he stressed presenting this progress at the upcoming USTR meeting.

A plan is needed to offset a possible 37 per cent tariff, as competitors are already preparing, he said, proposing a weekly progress tracker, led by senior government and supported by the private sector, to monitor key importable and seize this short-term opportunity.

He also stressed that Bangladesh must look "beyond customs duties." While most US importable already enjoy near-zero duties, the reliance on supplementary duties is unsustainable and should be phased out through a clear short- and long-term plan.

US is not only important for single largest export destination but also for its growth as 67 of its economy driven by consumption, he said, adding Bangladesh cannot afford losing the US market.

John Fay, Commercial Counselor, US Embassy Dhaka, said US companies face not only high import duty but the supplementary duties in many cases are also very high especially for IT and cold chain.

Terming 90 days not enough time, he stressed for specific measures engaging the private sector too.

Highlighting the US as Bangladesh's top export market and key investor, AmCham President Syed Ershad Ahmed said the country is contributing capital, technology transfer, and expertise in sectors like insurance, hospitality, and technology.

He acknowledged over 50 years of US-Bangladesh ties and called for reciprocal tariff adjustments and a bilateral agreement to address trade barriers.

Mohammad Belal Hossain Chowdhury, Member (VAT Implementation & IT), NBR, announced that draft legislation for the Central Bonded Warehouse is in progress, aiming to resolve longstanding issues with a solution-focused approach.​

 

[Saif]

Trump warns no country 'off the hook' on tariffs

US President Donald Trump warned Sunday that no country would be "getting off the hook" on tariffs, as his administration suggested exemptions seen as favoring China would be short-lived.

en.prothomalo.com

Trump warns no country 'off the hook' on tariffs
AFP Washington
Published: 14 Apr 2025, 12: 17

US President Donald Trump arrives at the White House in Washington, DC, on 13 April, 2025. Trump returns from a weekend at Mar-a-Lago. AFP

US President Donald Trump warned Sunday that no country would be "getting off the hook" on tariffs, as his administration suggested exemptions seen as favoring China would be short-lived.

The world's two largest economies have been locked in a fast-moving, high-stakes game of brinkmanship since Trump launched a global tariff assault that particularly targeted Chinese imports.

Tit-for-tat exchanges have seen US levies imposed on China rise to 145 per cent, and Beijing setting a retaliatory 125 per cent band on US imports.

The US side had appeared to dial down the pressure slightly on Friday, listing tariff exemptions for smartphones, laptops, semiconductors and other electronic products for which China is a major source.

Trump and some of his top aides said Sunday that the exemptions had been misconstrued and would only be temporary as his team pursued fresh tariffs against many items on the list.

"NOBODY is getting 'off the hook'... especially not China which, by far, treats us the worst!" he posted on his Truth Social platform.

Earlier, Beijing's Commerce Ministry had said Friday's move only "represents a small step" and insisted that the Trump administration should "completely cancel" the whole tariff strategy.

Chinese President Xi Jinping warned Monday -- as he kicked off a tour of Southeast Asia with a visit to manufacturing powerhouse Vietnam -- that protectionism "will lead nowhere".

Writing in an article published in a Vietnamese newspaper, Xi urged the two countries to "resolutely safeguard the multilateral trading system, stable global industrial and supply chains, and open and cooperative international environment."

He also reiterated Beijing's line that a "trade war and tariff war will produce no winner." Asian stock markets rose Monday after Trump's announcement of the tariff exemptions.

Short-lived relief?

Washington's new exemptions will benefit US tech companies such as Nvidia and Dell as well as Apple, which makes iPhones and other premium products in China.

The relief could, however, be short-lived with some of the exempted consumer electronics targeted for upcoming sector-specific tariffs on goods deemed key to US national defense networks.

On Air Force One Sunday, Trump said tariffs on the semiconductors -- which powers any major technology from e-vehicles and iPhones to missile systems -- "will be in place in the not distant future."

"Like we did with steel, like we did with automobiles, like we did with aluminum... we'll be doing that with semiconductors, with chips and numerous other things," he said.

"We want to make our chips and semiconductors and other things in our country," Trump reiterated, adding that he would do the same with "drugs and pharmaceuticals."

The US president said he would announce tariffs rates for semiconductors "over the next week," while his commerce secretary, Howard Lutnick, said they would likely be in place "in a month or two."

The US president sent financial markets into a tailspin earlier this month by announcing sweeping import taxes on dozens of trade partners, only to abruptly announce a 90-day pause for most of them.

China was excluded from the reprieve.

The White House says Trump remains optimistic about securing a deal with China, although administration officials have made it clear they expect Beijing to reach out first.

Trump's trade representative Jamieson Greer told CBS "Face the Nation" on Sunday that "we don't have any plans" for talks between the US president and his Chinese counterpart Xi.

China looks elsewhere

China has sought to present itself as a stable alternative to an erratic Washington, courting countries spooked by the global economic storm.

Besides Vietnam, Xi will also visit Malaysia and Cambodia, seeking to tighten regional trade ties and with plans to meet his three Southeast Asian counterparts.

The fallout from Trump's tariffs -- and subsequent whiplash policy reversals -- has sent particular shockwaves through the US economy, with investors dumping government bonds, the dollar tumbling and consumer confidence plunging.

Adding to the pressure on Trump, Wall Street billionaires -- including a number of his own supporters -- have openly criticized the tariff strategy as damaging and counterproductive.

The White House insists the aggressive policy is bearing fruit, saying dozens of countries have already opened trade negotiations to secure a deal before the 90-day pause ends.

"We're working around the clock, day and night, sharing paper, receiving offers and giving feedback to these countries," Greer told CBS.​