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Bangladesh escapes tariff imposition for US exports for 90 days.
[🇧🇩] Trump's Victory/Tariff/ Bangladesh
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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
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.
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.
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Saif
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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
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.”
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.”
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Saif
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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.
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.
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Saif
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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.”
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.”
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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.
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.
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Saif
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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
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.
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.
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Saif
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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.
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.
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Saif
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- Jan 24, 2024
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undefined | The Financial Express
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.
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.
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Saif
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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.
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.
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Saif
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How to mitigate the impact of Trump’s reciprocal tariffs
Bangladesh faced a crippling 37 percent tariff on its exports to the US.
How to mitigate the impact of Trump’s reciprocal tariffs
RMG exports, the engine of Bangladesh's external economy, account for more than 85 percent of its exports to the US. FILE PHOTO: REUTERS
The United States government's decision on reciprocal tariffs has sent shockwaves through financial markets and reverberated through economies worldwide. On April 2, the US introduced a sweeping tariff policy, imposing a baseline 10 percent reciprocal tariff on all imports and even higher country-specific tariffs. Bangladesh faced a crippling 37 percent tariff on its exports to the US. This new tariff regime not only sparked a global market crash but also ignited diplomatic and economic turmoil. Of course, a 90-day pause in the tariff decisions was placed within a week.
The market reaction was just one factor among several influencing the temporary change of decision on the tariffs. Growing political concern, both within the US and among international trading partners, has also been an issue. Many industry leaders and governments voiced unease over the economic uncertainty caused by these new tariffs. Concurrently, diplomatic negotiations took place, especially with countries that had avoided retaliatory measures. These combined factors led to the temporary suspension of tariffs on April 9 for more than 75 countries, while maintaining—and in some cases strengthening—the measures specifically directed towards China.
The US decision to impose a 145 percent tariff was met with a retaliatory 125 percent tariff from China on American goods. This tit-for-tat dynamic suggests that what was once a strategic economic rivalry has now spiralled into a trade war with far-reaching global consequences, where collateral damage is inevitable. For smaller export-dependent economies like Bangladesh, which are plugged into global supply chains through their economic activities, the repercussions are significant.
Bangladesh's trade in goods with the US is about $10.6 billion. In 2024, our total goods exports to the US were $8.4 billion, and imports from the US amounted to $2.2 billion. The additional 37 percent reciprocal tariff, if put into effect, presents a threat to Bangladesh's exports, especially its RMG sector, which is its economic lifeblood. RMG exports account for more than 85 percent of the country's exports to the US. Though a Least Developed Country (LDC), Bangladesh has not been allowed duty-free, quota-free (DFQF) market access for its RMG to the US since 2013. The country has already been paying a 15 percent tariff for its RMG products to enter the US market.
The new tariff regime will make Bangladeshi goods significantly more expensive in the US. As a result, US buyers may opt for suppliers from countries not subjected to the same tariff burdens—and Bangladesh risks losing market share in one of its most critical export destinations. The price shock could be absorbed by US buyers and Bangladeshi exporters to shield consumers from high prices. But whether, and by how much, the increased cost will be shared by exporters and importers is uncertain.
The RMG sector is not only the engine of Bangladesh's external economy but also an important source of employment. Therefore, the consequences of these tariffs for the RMG industry cannot be ignored. A reduction in orders from US retailers due to higher prices could force factories to cut back on production. In a labour-intensive industry, this will lead to job losses. Such a reduction could also have social ramifications—from rising unemployment and poverty to increased pressure on public services and social safety nets.
Beyond the direct impact on exporters and workers, high tariffs also threaten to disrupt Bangladesh's macroeconomic stability. Lower export earnings could lead to a widening trade deficit and reduced foreign exchange reserves. Additionally, the anticipated decline in US demand could push Bangladeshi manufacturers to slash profit margins and invest less in innovation, skills, and sustainability measures.
Following the US tariff announcement, the Bangladesh government wrote a letter to the US president on April 7 requesting the US to postpone the implementation of the tariffs for three months. Bangladesh has signalled a willingness to import more US products, including agricultural commodities like cotton, wheat, and soybeans, in an attempt to reduce the existing trade deficit.
One of the unfinished tasks has been developing a robust export sector in Bangladesh through diversification of both export products and markets. Dependency on a single export product is a weak trade strategy, as it is subject to vulnerability from both domestic and external shocks. Product diversification also includes the expansion of items within the RMG industry. Beyond RMG, leather products and pharmaceuticals also have a higher export potential. Diversification of markets will also help buffer against trade shocks to some extent. Moreover, Bangladesh must continue to invest in enhancing the quality and value of its products through improved designs, sustainability certifications, and compliance with international labour and environmental standards to maintain its competitive edge.
Since powerful countries have consistently undermined the rule-based multilateral trading system over the years, the objective of the World Trade Organization (WTO) to promote open and fair trade globally by reducing or eliminating tariffs has been facing challenges. Therefore, WTO member-states have resorted to plurilateral and bilateral trade agreements. Bangladesh is lagging behind in this regard. We should negotiate free trade agreements (FTAs) with our trading partners to prepare a robust trade sector. Countries such as Vietnam and Cambodia, which also export RMG products, have moved far ahead in this regard, enhancing their market access and export competitiveness.
Bangladesh should aggressively pursue FTAs that will offer tariff-free or reduced-tariff access to other markets. Strengthening its presence in regional trade blocs like BIMSTEC and deepening engagement with ASEAN economies could open new pathways for trade growth and regional integration. To achieve these objectives, the government must also align domestic policies with international standards, particularly concerning labour rights and environmental regulations. A thorough review of its tariff structures is also important. This is especially so as the country will graduate from LDC status in November 2026—when it will no longer enjoy non-reciprocity of tariff measures with its trading partners.
As part of trade policy reform, Bangladesh should demonstrate its commitment to fair trade by reducing non-tariff barriers (NTBs) and improving customs facilitation. Capacity-building across industries—via training programmes, technology adoption, and quality assurance mechanisms—will be essential to elevate the country's exports beyond price sensitivity.
The 90-day window is, therefore, an opportunity for Bangladesh to prove its diplomatic agility, economic foresight, and institutional capacity to respond to external shocks. Of course, it will take a long time to implement trade reforms. But if worked on systematically, Bangladesh can turn this challenge into a catalyst for transformation. It can leverage this critical moment for sustainable growth that is less dependent on preferential access and more rooted in innovation, diversification, quality, and productivity.
Dr Fahmida Khatun is executive director at the Centre for Policy Dialogue (CPD). Views expressed in this article are the author's own.
RMG exports, the engine of Bangladesh's external economy, account for more than 85 percent of its exports to the US. FILE PHOTO: REUTERS
The United States government's decision on reciprocal tariffs has sent shockwaves through financial markets and reverberated through economies worldwide. On April 2, the US introduced a sweeping tariff policy, imposing a baseline 10 percent reciprocal tariff on all imports and even higher country-specific tariffs. Bangladesh faced a crippling 37 percent tariff on its exports to the US. This new tariff regime not only sparked a global market crash but also ignited diplomatic and economic turmoil. Of course, a 90-day pause in the tariff decisions was placed within a week.
The market reaction was just one factor among several influencing the temporary change of decision on the tariffs. Growing political concern, both within the US and among international trading partners, has also been an issue. Many industry leaders and governments voiced unease over the economic uncertainty caused by these new tariffs. Concurrently, diplomatic negotiations took place, especially with countries that had avoided retaliatory measures. These combined factors led to the temporary suspension of tariffs on April 9 for more than 75 countries, while maintaining—and in some cases strengthening—the measures specifically directed towards China.
The US decision to impose a 145 percent tariff was met with a retaliatory 125 percent tariff from China on American goods. This tit-for-tat dynamic suggests that what was once a strategic economic rivalry has now spiralled into a trade war with far-reaching global consequences, where collateral damage is inevitable. For smaller export-dependent economies like Bangladesh, which are plugged into global supply chains through their economic activities, the repercussions are significant.
Bangladesh's trade in goods with the US is about $10.6 billion. In 2024, our total goods exports to the US were $8.4 billion, and imports from the US amounted to $2.2 billion. The additional 37 percent reciprocal tariff, if put into effect, presents a threat to Bangladesh's exports, especially its RMG sector, which is its economic lifeblood. RMG exports account for more than 85 percent of the country's exports to the US. Though a Least Developed Country (LDC), Bangladesh has not been allowed duty-free, quota-free (DFQF) market access for its RMG to the US since 2013. The country has already been paying a 15 percent tariff for its RMG products to enter the US market.
The new tariff regime will make Bangladeshi goods significantly more expensive in the US. As a result, US buyers may opt for suppliers from countries not subjected to the same tariff burdens—and Bangladesh risks losing market share in one of its most critical export destinations. The price shock could be absorbed by US buyers and Bangladeshi exporters to shield consumers from high prices. But whether, and by how much, the increased cost will be shared by exporters and importers is uncertain.
The RMG sector is not only the engine of Bangladesh's external economy but also an important source of employment. Therefore, the consequences of these tariffs for the RMG industry cannot be ignored. A reduction in orders from US retailers due to higher prices could force factories to cut back on production. In a labour-intensive industry, this will lead to job losses. Such a reduction could also have social ramifications—from rising unemployment and poverty to increased pressure on public services and social safety nets.
Beyond the direct impact on exporters and workers, high tariffs also threaten to disrupt Bangladesh's macroeconomic stability. Lower export earnings could lead to a widening trade deficit and reduced foreign exchange reserves. Additionally, the anticipated decline in US demand could push Bangladeshi manufacturers to slash profit margins and invest less in innovation, skills, and sustainability measures.
Following the US tariff announcement, the Bangladesh government wrote a letter to the US president on April 7 requesting the US to postpone the implementation of the tariffs for three months. Bangladesh has signalled a willingness to import more US products, including agricultural commodities like cotton, wheat, and soybeans, in an attempt to reduce the existing trade deficit.
One of the unfinished tasks has been developing a robust export sector in Bangladesh through diversification of both export products and markets. Dependency on a single export product is a weak trade strategy, as it is subject to vulnerability from both domestic and external shocks. Product diversification also includes the expansion of items within the RMG industry. Beyond RMG, leather products and pharmaceuticals also have a higher export potential. Diversification of markets will also help buffer against trade shocks to some extent. Moreover, Bangladesh must continue to invest in enhancing the quality and value of its products through improved designs, sustainability certifications, and compliance with international labour and environmental standards to maintain its competitive edge.
Since powerful countries have consistently undermined the rule-based multilateral trading system over the years, the objective of the World Trade Organization (WTO) to promote open and fair trade globally by reducing or eliminating tariffs has been facing challenges. Therefore, WTO member-states have resorted to plurilateral and bilateral trade agreements. Bangladesh is lagging behind in this regard. We should negotiate free trade agreements (FTAs) with our trading partners to prepare a robust trade sector. Countries such as Vietnam and Cambodia, which also export RMG products, have moved far ahead in this regard, enhancing their market access and export competitiveness.
Bangladesh should aggressively pursue FTAs that will offer tariff-free or reduced-tariff access to other markets. Strengthening its presence in regional trade blocs like BIMSTEC and deepening engagement with ASEAN economies could open new pathways for trade growth and regional integration. To achieve these objectives, the government must also align domestic policies with international standards, particularly concerning labour rights and environmental regulations. A thorough review of its tariff structures is also important. This is especially so as the country will graduate from LDC status in November 2026—when it will no longer enjoy non-reciprocity of tariff measures with its trading partners.
As part of trade policy reform, Bangladesh should demonstrate its commitment to fair trade by reducing non-tariff barriers (NTBs) and improving customs facilitation. Capacity-building across industries—via training programmes, technology adoption, and quality assurance mechanisms—will be essential to elevate the country's exports beyond price sensitivity.
The 90-day window is, therefore, an opportunity for Bangladesh to prove its diplomatic agility, economic foresight, and institutional capacity to respond to external shocks. Of course, it will take a long time to implement trade reforms. But if worked on systematically, Bangladesh can turn this challenge into a catalyst for transformation. It can leverage this critical moment for sustainable growth that is less dependent on preferential access and more rooted in innovation, diversification, quality, and productivity.
Dr Fahmida Khatun is executive director at the Centre for Policy Dialogue (CPD). Views expressed in this article are the author's own.
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Saif
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Can Bangladesh ride out the wave of US tariffs?
The global trading system, largely unchanged for a century, got a rude awakening on April 2 when US President Donald Trump slapped massive tariffs on imports into his country. The move sent shockwaves through world markets -- because when America sneezes, the global economy catches a cold.
Can Bangladesh ride out the wave of US tariffs?
The global trading system, largely unchanged for a century, got a rude awakening on April 2 when US President Donald Trump slapped massive tariffs on imports into his country. The move sent shockwaves through world markets -- because when America sneezes, the global economy catches a cold.
At the heart of the storm is a staggering 145 percent tariff on Chinese goods. For Bangladesh, the hit was smaller but still painful -- a new 37 percent duty on top of existing taxes.
The announcement sent businesses scrambling. Orders froze. Buyers demanded discounts. Stock markets plummeted.
The tariffs were to take effect on the night of April 9. Then, at the eleventh hour, Trump suddenly paused the tariffs for 90 days -- except for China, which remains locked in a trade war with Washington.
However, the 10 percent baseline tariff on all products entering the American market will continue.
WHY NOW?
Trump had promised brutal tariffs during his 2024 campaign, vowing to bring manufacturing back to America. By following through, he aims to revive American manufacturing and boost domestic agricultural sales.
His administration specifically wants to bring back production of high-tech goods like microchips, where China dominates the market.
China's stranglehold on high-tech industries, like semiconductor chips -- a $400 product that takes just hours to make but which the US can't produce cheaply anymore.
But why hit Bangladesh, a country that mostly sells garment items?
Simple: leverage.
Trump knows apparel-exporting nations depend on the US market. By squeezing them, he gains bargaining chips for future deals.
Interestingly, Trump doesn't prioritise mass production sectors like apparel due to their labour-intensive nature. Still, he imposed tariffs on apparel-producing countries like Bangladesh to gain leverage for future negotiations.
WHAT DOES THE HIGH TARIFF MEAN FOR BANGLADESH?
The US has long been Bangladesh's largest export destination, especially for garments, which account for over 90 percent of Bangladesh's exports to the US.
The US buys over $8 billion a year in garments from Bangladesh. But now, with tariffs set to jump from 16.1 percent to 53.5 percent, factory owners are sweating.
Currently, Bangladesh is the third-largest apparel supplier to the US market after China and Vietnam respectively, accounting for around 9.3 percent of total US garment imports of $105 billion in a year, according to official data.
Bangladesh's garment export to the US was recovering from a slowdown over the last two years brought on by the severe fallout of Covid-19, Russia-Ukraine war, and historic inflationary pressure on the Western consumers.
The American government does not allow duty benefits on garment imports except for from 39 African countries under the African Growth and Opportunity Act.
So, Bangladesh does not enjoy duty benefits on garment shipments to the US.
Although the US agreed to allow duty free benefit for 97 percent of goods originated in the least developed countries (LDCs), it kept Bangladeshi garment items in the remaining three percent.
Still, Bangladesh's apparel exports to the US reached $1.5 billion during the January–February period of 2025, up 26.64 percent from $1.18 billion year-on-year, according to the US Office of Textiles and Apparel (OTEXA), a wing of the US Department of Commerce.
In the same timeframe, the US' global apparel imports increased by 11.2 percent to $13.55 billion.
During this time frame, the growth rates for apparel imports from other key countries stood at 8.85 percent for China, 25.70 percent for India, 23.05 percent for Pakistan, and 11.14 percent for Vietnam.
The US imported 23.38 percent more from Bangladesh, 7.25 percent more from Vietnam, 5.78 percent more from China, 31.90 percent more from India, 24.68 percent more from Pakistan compared to January-February 2024. The unit price per piece experienced a positive growth of 2.64 percent for Bangladesh.
There's a twist in the latest tariff shock, though.
China and Vietnam -- Bangladesh's top rivals -- got hit even harder.
If their goods become too expensive for American buyers, Bangladesh could steal market share.
If Trump enforces the full tariff structure after the 90-day pause, countries like China, Vietnam, and Cambodia could lose competitiveness.
However, India and Pakistan -- facing lower tariffs than Bangladesh -- could attract more work orders, causing some buyers to shift from Bangladesh to these nations, along with Egypt, Kenya, and Turkey.
Despite these challenges, trade experts say Bangladesh remains cost-competitive due to its skilled workforce, lower production costs, and large manufacturing capacity.
For example, if international clothing retailers and brands pay $10 for a T-shirt from China or Vietnam, it might cost only $5–$6 from Bangladesh.
GLOBAL PRICE WARS AHEAD?
With higher tariffs pushing China and Vietnam out of the US market, they may focus more on European and Asian markets, sparking fierce price wars. This could affect all major apparel suppliers, including Bangladesh, as global buyers push for lower prices.
If China, Vietnam, Bangladesh, India and Pakistan supply to the same markets, the international clothing retailers and brands will take the opportunity to seek price cuts from the local suppliers.
At the same time, US-based retailers, who pay the tariffs, are negotiating with suppliers in Bangladesh to share the added costs. This pressure could impact profitability for Bangladeshi manufacturers.
CURRENT US-BANGLADESH TRADE OUTLOOK
Historically, the balance of trade between Bangladesh and the US has been heavily tilted towards Bangladesh because of higher garment shipments to American markets, especially woven garments such as trousers and T-shirts.
Last year, Bangladesh exported goods worth $8.36 billion to the US, up from $8.27 billion in 2023, according to data from the United States Bureau of Census.
On the other hand, Bangladesh imported just $2.21 billion worth of goods from the US in 2024, down from $2.24 billion in 2023. Bangladesh mainly imported cotton, soybean seeds, iron and steel products from the USA.
While Trump's tariff strategy aims to protect domestic industries, American consumers could ultimately bear the cost. Since importers pay the tariff and often pass it on to consumers, prices are expected to rise.
As such, major US trade bodies, including the American Apparel and Footwear Association, the United States Fashion Industry Association, and the National Retail Federation, have expressed concern. They warn that higher tariffs may increase living costs, spark inflation, and possibly lead to a recession.
BANGLADESH'S DIPLOMATIC RESPONSE
Bangladesh has already taken steps to address the situation.
Chief Adviser to the interim government Professor Muhammad Yunus sent a letter to Trump seeking a pause for 90 days and Commerce Adviser Sk Bashir Uddin sent another letter to the United States Trade Representative (USTR), the chief trade negotiation body for the American government, offering duty-free benefit to another 100 American goods in addition to the 190 already privy to such benefits.
A team is scheduled to travel to the USA on April 21 to hold negotiations with the USTR for lowering the tariff rates for Bangladesh.
A WINDOW OF OPPORTUNITY?
Like other countries, Bangladesh has also been left to calculate whether this is an opportunity or a threat. So far, analyses show that while the tariffs pose challenges, they may also offer opportunities if Bangladesh plays its cards right
For instance, China may lose a big market share due to the 145 percent tariff.
Bangladesh has a lot of skilled workforce, higher installed capacity, lower prices, lower production cost and lower tariff rates compared with China and Vietnam.
So, losing Chinese and Vietnamese competition could help Bangladesh gain market share -- if it acts strategically.
"It's an opportunity if we can play our cards right. It's a disaster if we don't engage in meaningful economic diplomacy," said Rubana Huq, a former president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
"Everything will depend on strong diplomatic moves. Above all, we must connect with the key personnel in the Trump administration, who in this case is Scott Bessent, who has been entrusted by Trump to deal with individual countries. Strategic alignments are needed besides committing to more imports and removal of non-trade barriers," Huq said.
"Let's remember that Vietnam, in spite of reaching out to Trump at the very beginning, is now being viewed as an adversary of the US administration just because there are discourses on regional interests, which have just started in Asia.
"Meanwhile, India is in a comparatively favourable position as they are single-handedly wooing the Trump administration. So, it's about giving the right dose of attention to the US for being the single largest export destination for Bangladesh."
AK Azad, managing director of Ha-Meem Group which exports 90 percent of its products to the US, said Bangladesh should negotiate with the aim of gaining something positive from this game.
Bangladesh should offer a zero-duty rate on the import of American goods. If it does so, then the US may also offer zero-duty benefits on Bangladeshi imports. This will be a huge benefit for Bangladesh from this game, Azad said.
Mohammad Abdur Razzaque, chairman of Research and Policy Integration for Development (RAPID), said if the 145 percent tariff on China is finally fixed, it may present a window of opportunity for Bangladesh.
Since Vietnam has also been facing higher tariffs, the Chinese investment in Vietnam may also be affected. However, it is really difficult to say anything definite because Trump is unpredictable, Razzaque said.
At the same time, Bangladesh's supply side should also be increased and improved.
For instance, 75 percent of Chinese garments exported to the US are composed of man-made fibre-based items, but Bangladesh is not so strong in man-made garment items. If Bangladesh does not invest more in backwards integration of the garment industry, the country may not benefit a lot from this tariff game, he added.
The global trading system, largely unchanged for a century, got a rude awakening on April 2 when US President Donald Trump slapped massive tariffs on imports into his country. The move sent shockwaves through world markets -- because when America sneezes, the global economy catches a cold.
At the heart of the storm is a staggering 145 percent tariff on Chinese goods. For Bangladesh, the hit was smaller but still painful -- a new 37 percent duty on top of existing taxes.
The announcement sent businesses scrambling. Orders froze. Buyers demanded discounts. Stock markets plummeted.
The tariffs were to take effect on the night of April 9. Then, at the eleventh hour, Trump suddenly paused the tariffs for 90 days -- except for China, which remains locked in a trade war with Washington.
However, the 10 percent baseline tariff on all products entering the American market will continue.
WHY NOW?
Trump had promised brutal tariffs during his 2024 campaign, vowing to bring manufacturing back to America. By following through, he aims to revive American manufacturing and boost domestic agricultural sales.
His administration specifically wants to bring back production of high-tech goods like microchips, where China dominates the market.
China's stranglehold on high-tech industries, like semiconductor chips -- a $400 product that takes just hours to make but which the US can't produce cheaply anymore.
But why hit Bangladesh, a country that mostly sells garment items?
Simple: leverage.
Trump knows apparel-exporting nations depend on the US market. By squeezing them, he gains bargaining chips for future deals.
Interestingly, Trump doesn't prioritise mass production sectors like apparel due to their labour-intensive nature. Still, he imposed tariffs on apparel-producing countries like Bangladesh to gain leverage for future negotiations.
WHAT DOES THE HIGH TARIFF MEAN FOR BANGLADESH?
The US has long been Bangladesh's largest export destination, especially for garments, which account for over 90 percent of Bangladesh's exports to the US.
The US buys over $8 billion a year in garments from Bangladesh. But now, with tariffs set to jump from 16.1 percent to 53.5 percent, factory owners are sweating.
Currently, Bangladesh is the third-largest apparel supplier to the US market after China and Vietnam respectively, accounting for around 9.3 percent of total US garment imports of $105 billion in a year, according to official data.
Bangladesh's garment export to the US was recovering from a slowdown over the last two years brought on by the severe fallout of Covid-19, Russia-Ukraine war, and historic inflationary pressure on the Western consumers.
The American government does not allow duty benefits on garment imports except for from 39 African countries under the African Growth and Opportunity Act.
So, Bangladesh does not enjoy duty benefits on garment shipments to the US.
Although the US agreed to allow duty free benefit for 97 percent of goods originated in the least developed countries (LDCs), it kept Bangladeshi garment items in the remaining three percent.
Still, Bangladesh's apparel exports to the US reached $1.5 billion during the January–February period of 2025, up 26.64 percent from $1.18 billion year-on-year, according to the US Office of Textiles and Apparel (OTEXA), a wing of the US Department of Commerce.
In the same timeframe, the US' global apparel imports increased by 11.2 percent to $13.55 billion.
During this time frame, the growth rates for apparel imports from other key countries stood at 8.85 percent for China, 25.70 percent for India, 23.05 percent for Pakistan, and 11.14 percent for Vietnam.
The US imported 23.38 percent more from Bangladesh, 7.25 percent more from Vietnam, 5.78 percent more from China, 31.90 percent more from India, 24.68 percent more from Pakistan compared to January-February 2024. The unit price per piece experienced a positive growth of 2.64 percent for Bangladesh.
There's a twist in the latest tariff shock, though.
China and Vietnam -- Bangladesh's top rivals -- got hit even harder.
If their goods become too expensive for American buyers, Bangladesh could steal market share.
If Trump enforces the full tariff structure after the 90-day pause, countries like China, Vietnam, and Cambodia could lose competitiveness.
However, India and Pakistan -- facing lower tariffs than Bangladesh -- could attract more work orders, causing some buyers to shift from Bangladesh to these nations, along with Egypt, Kenya, and Turkey.
Despite these challenges, trade experts say Bangladesh remains cost-competitive due to its skilled workforce, lower production costs, and large manufacturing capacity.
For example, if international clothing retailers and brands pay $10 for a T-shirt from China or Vietnam, it might cost only $5–$6 from Bangladesh.
GLOBAL PRICE WARS AHEAD?
With higher tariffs pushing China and Vietnam out of the US market, they may focus more on European and Asian markets, sparking fierce price wars. This could affect all major apparel suppliers, including Bangladesh, as global buyers push for lower prices.
If China, Vietnam, Bangladesh, India and Pakistan supply to the same markets, the international clothing retailers and brands will take the opportunity to seek price cuts from the local suppliers.
At the same time, US-based retailers, who pay the tariffs, are negotiating with suppliers in Bangladesh to share the added costs. This pressure could impact profitability for Bangladeshi manufacturers.
CURRENT US-BANGLADESH TRADE OUTLOOK
Historically, the balance of trade between Bangladesh and the US has been heavily tilted towards Bangladesh because of higher garment shipments to American markets, especially woven garments such as trousers and T-shirts.
Last year, Bangladesh exported goods worth $8.36 billion to the US, up from $8.27 billion in 2023, according to data from the United States Bureau of Census.
On the other hand, Bangladesh imported just $2.21 billion worth of goods from the US in 2024, down from $2.24 billion in 2023. Bangladesh mainly imported cotton, soybean seeds, iron and steel products from the USA.
While Trump's tariff strategy aims to protect domestic industries, American consumers could ultimately bear the cost. Since importers pay the tariff and often pass it on to consumers, prices are expected to rise.
As such, major US trade bodies, including the American Apparel and Footwear Association, the United States Fashion Industry Association, and the National Retail Federation, have expressed concern. They warn that higher tariffs may increase living costs, spark inflation, and possibly lead to a recession.
BANGLADESH'S DIPLOMATIC RESPONSE
Bangladesh has already taken steps to address the situation.
Chief Adviser to the interim government Professor Muhammad Yunus sent a letter to Trump seeking a pause for 90 days and Commerce Adviser Sk Bashir Uddin sent another letter to the United States Trade Representative (USTR), the chief trade negotiation body for the American government, offering duty-free benefit to another 100 American goods in addition to the 190 already privy to such benefits.
A team is scheduled to travel to the USA on April 21 to hold negotiations with the USTR for lowering the tariff rates for Bangladesh.
A WINDOW OF OPPORTUNITY?
Like other countries, Bangladesh has also been left to calculate whether this is an opportunity or a threat. So far, analyses show that while the tariffs pose challenges, they may also offer opportunities if Bangladesh plays its cards right
For instance, China may lose a big market share due to the 145 percent tariff.
Bangladesh has a lot of skilled workforce, higher installed capacity, lower prices, lower production cost and lower tariff rates compared with China and Vietnam.
So, losing Chinese and Vietnamese competition could help Bangladesh gain market share -- if it acts strategically.
"It's an opportunity if we can play our cards right. It's a disaster if we don't engage in meaningful economic diplomacy," said Rubana Huq, a former president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
"Everything will depend on strong diplomatic moves. Above all, we must connect with the key personnel in the Trump administration, who in this case is Scott Bessent, who has been entrusted by Trump to deal with individual countries. Strategic alignments are needed besides committing to more imports and removal of non-trade barriers," Huq said.
"Let's remember that Vietnam, in spite of reaching out to Trump at the very beginning, is now being viewed as an adversary of the US administration just because there are discourses on regional interests, which have just started in Asia.
"Meanwhile, India is in a comparatively favourable position as they are single-handedly wooing the Trump administration. So, it's about giving the right dose of attention to the US for being the single largest export destination for Bangladesh."
AK Azad, managing director of Ha-Meem Group which exports 90 percent of its products to the US, said Bangladesh should negotiate with the aim of gaining something positive from this game.
Bangladesh should offer a zero-duty rate on the import of American goods. If it does so, then the US may also offer zero-duty benefits on Bangladeshi imports. This will be a huge benefit for Bangladesh from this game, Azad said.
Mohammad Abdur Razzaque, chairman of Research and Policy Integration for Development (RAPID), said if the 145 percent tariff on China is finally fixed, it may present a window of opportunity for Bangladesh.
Since Vietnam has also been facing higher tariffs, the Chinese investment in Vietnam may also be affected. However, it is really difficult to say anything definite because Trump is unpredictable, Razzaque said.
At the same time, Bangladesh's supply side should also be increased and improved.
For instance, 75 percent of Chinese garments exported to the US are composed of man-made fibre-based items, but Bangladesh is not so strong in man-made garment items. If Bangladesh does not invest more in backwards integration of the garment industry, the country may not benefit a lot from this tariff game, he added.
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