Tariff Turmoil: U.S. Imposes 37% Duty on Bangladeshi Goods
U.S. Increases Tariffs on Bangladeshi Exports to 37%, Government Evaluates Impact
The United States has imposed a 37% tariff on Bangladeshi products, a significant increase from the previous 16% duty. This move is expected to have a negative impact on Bangladesh’s export sector, particularly the ready-made garment (RMG) industry. The Bangladeshi government is currently assessing the potential consequences and formulating a response.
While Bangladesh faces this higher tariff, the U.S. has also imposed duties on competing nations, such as Vietnam (46%), Sri Lanka (44%), and Myanmar (44%). Officials are analyzing how these new tariffs will affect Bangladesh’s export competitiveness.
Bangladesh’s Response and Strategy
In response, Bangladesh is focusing on trade balance concerns, particularly the trade deficit with the United States. Discussions include strategies such as increasing imports from the U.S., integrating new technologies, and reviewing tariff structures. Additionally, the inclusion of Bangladesh’s $5 billion ICT card exports to the UK in trade evaluations has been suggested.
On Thursday, April 3, Faiz Taiyeb Ahmad, Special Government Adviser to the Chief Adviser, wrote in a social media statement, "As other countries prepare for the newly announced tariff hurdles, Bangladesh is working on reducing tariff structures to attract international investors. We will offer easy registration, export incentives, secure land, quality electricity, reliable internet, and highly flexible data center, infrastructure, and cloud policies within our EPZs, special EPZs, and high-tech parks."
Previously, Abul Kalam Azad Majumdar, Deputy Press Secretary to the Chief Adviser, stated that Bangladesh is reviewing tariffs on U.S. imports. The National Board of Revenue (NBR) is identifying urgent steps to rationalize tariffs. In his statement, he emphasized, "The U.S. is Bangladesh’s closest ally and largest export destination. Since the Trump administration took office, we have been working to strengthen trade and investment cooperation. Our ongoing efforts, in coordination with the U.S. government, are expected to help resolve this tariff issue."
Pressure to Address Trade Imbalance
A source in Washington indicated that the next three to six months will be crucial in handling this situation. The U.S. has a trade deficit with Bangladesh, as Bangladesh exports significantly more than it imports from the U.S.
To address this imbalance, experts suggest that Bangladesh increase imports of U.S. goods, including soybean oil, cotton, wheat, and technology-related products. A trade analyst noted, "It is essential for Bangladesh to demonstrate its commitment to reducing the trade deficit."
Bangladesh’s Export-Import Relations with the U.S.
Bangladesh’s primary exports to the U.S. include ready-made garments, while its imports from the U.S. consist of machinery, aircraft, and other industrial products. According to the latest trade data, Bangladesh exported approximately $8.5 billion worth of goods to the U.S. in the last fiscal year.
