Staff Reporter :
The Asian Development Bank (ADB) has underscored the urgent need for Bangladesh to diversify its export products and markets, following the recent imposition of a 37 per cent tariff by the United States under its new “Reciprocal Tariffs” policy.
Speaking at the launch of the April 2025 edition of the Asian Development Outlook (ADO), held at the ADB’s Bangladesh Resident Mission in Agargaon in the capital on Wednesday ADB Country Director for Bangladesh, Hoe Yun Jeong, advised that strategic diversification is vital to mitigating the long-term impact of the US policy shift.
“There are measures that can be taken to offset the potential adverse effects. Bangladesh must continue to engage proactively in negotiations with the United States – a process that is already underway,” Jeong stated in response to journalists’ questions.
The US administration, under President Donald Trump, has introduced the tariff in response to what it claims is an effective 74 per cent tariff imposed by Bangladesh on American goods. In retaliation, Washington has applied a “discounted reciprocal tariff” of 37 per cent on Bangladeshi imports.
In reaction, Chief Adviser Professor Muhammad Yunus has written to President Trump, requesting a three-month deferral of the tariff implementation. This, he argued, would give the interim government time to facilitate increased US exports to Bangladesh as part of a broader initiative aimed at rebalancing trade relations.
Meanwhile, Commerce Adviser Sk. Bashir Uddin has contacted the Office of the US Trade Representative (USTR), offering to allow duty-free access for an additional 100 American products as a goodwill gesture to help address the existing trade imbalance.
While Jeong recognised that continued diplomatic efforts with the US are important in the short term, he emphasised that a more sustainable solution lies in Bangladesh’s long-term economic strategy – namely, expanding its export destinations and product lines.
He further suggested that the current situation presents an opportunity for Bangladesh to reform its own import tariff structure and reduce non-tariff barriers. Such measures, he said, should form part of a wider trade reform agenda, extending beyond the US to other key trade partners.
“These reforms are essential steps that the government should consider as part of its response to the US tariffs,” Jeong noted.
Though it is too early to fully quantify the economic impact of the US tariff hike, the ADB is continuing its analysis, with further insights expected in the July 2025 update of the ADO.
Addressing other macroeconomic concerns, Jeong identified persistently high inflation as one of Bangladesh’s most pressing challenges, warning that it is eroding consumer purchasing power and deterring private investment.
“Containing inflation will be a difficult policy task,” he said, stressing the importance of tackling supply-side constraints that contribute to inflationary pressures.
To this end, he recommended that the government invest in improving supply chains, lowering logistics costs, and expanding energy infrastructure to support both economic stability and long-term growth.
