Trump’s tariff storm: Emphasis must be given on negotiations

Bangladesh’s export sector is already facing various challenges. The recent US tariff hike on the country’s products has become a new challenge.

On Wednesday, US President Donald Trump imposed tariffs on goods imported from some countries, including Bangladesh, in an effort to reduce the trade deficit and protect US industries.

According to a report published in our newspaper, customs duties on goods imported from Bangladesh have been increased to 37 percent. The average rate so far has been 15 percent.

Experts and RMG leaders believe that this US move will have a negative impact on Bangladesh’s total exports.

The prices of Bangladeshi products in the US market will increase and consumers will reduce their purchases of Bangladeshi products. As a result, our exports will also decrease.

They apprehend that this change will create major challenges for Bangladesh and other developing countries. Such an uncertain system could create a difficult economic situation.

They describe the US tariff hike as a bolt from the blue. It may slow down the country’s ready-made garment exports.

Not only RMG, there is also fear that the US retaliatory tariff may slow down exports of leader products, home textiles, frozen fish and shrimp, and jute products.

It is to be noted that the Bangladesh’s main export product is ready-made garment; about 80 percent are exported to its main destination — the United States.

In the FY-24, 18 percent of Bangladesh’s total ready-made garment exports went to the United States.

Tariffs have also been increased on our competing countries — 34 percent in China, 46 percent in Vietnam, 37 percent in Bangladesh, 32 percent in Indonesia, and 26 percent in India.

Meanwhile, Chief Adviser Muhammad Yunus has expressed the hope that positive progress will be made in resolving the tariff issue through discussions with the US government.

Since it is negotiable, he said, “We will discuss the matter and we will reach the best solution.”

On the other hand, experts and analysts have emphasized a bilateral agreement with the United States.

Many have talked about reducing taxes on goods imported from the United States and continuing discussions on other platforms as well.

We believe that it is necessary to immediately start discussions with the United States in the interest of Bangladesh’s economy.

We must ensure that our main export sector, the ready-made garment industry, does not face major losses in any way.