‘CA Yunus could solve US tariff crisis’
Staff Reporter :
Business leaders are optimistics that diplomatic efforts of Chief Adviser Professor Dr. Muhammad Yunus will be able to solve the additional tariff barriers of the USA, said Sakif Shamim, Vice President candidate of the upcoming election of Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).
He said, the United States has imposed a 35 per cent tariff on Bangladeshi export products, raising concerns about potential negative impacts on the country’s economy.
Prominent entrepreneurin the health sector, Sakif Shamim, also Managing Director of Labaid Cancer Hospital and Super Speciality Center, expressed his concern regarding this development. He said the readymade garments (RMG) sector-one of the pillars of Bangladesh’s economic growth-could face serious challenges due to this tariff.
Previously, Bangladeshi products were already subjected to an average tariff of over 15 per cent. With the newly imposed 35 per cent, the total tariff rate would exceed 50 per cent. If this becomes effective, it could become nearly impossible for Bangladesh to remain competitive in the global market. And the impact will not be limited to garment factories alone.
The ripple effect will spread across the entire economy-affecting banking, insurance, transportation, ports, packaging-essentially every level of the export ecosystem. Many factories could struggle to survive.
In this situation, Sakif Shamim stressed the need for the government to prioritise government-to-government (G2G) dialogue and bilateral meetings to resolve the ongoing crisis. He urged the Bangladesh government to initiate immediate discussions with U.S. trade authorities with a specific agenda. The goal should be to explore possibilities for special exemptions or phased implementation of the tariff.
The business leader further said that the business community is deeply concerned over the imposition of the 35 per cent U.S. tariff. Supporting the views of Finance Adviser Dr. Salehuddin Ahmed, he emphasised the need to pursue one-to-one negotiations to reduce the tariff rate. Currently, Bangladesh has trade advisers and relevant officials in the U.S., who are actively engaging in discussions with the United States Trade Representative (USTR). Business leaders are hopeful that negotiations will ultimately lead to tariff relief.
The issue of counter-tariffs by the U.S. goes beyond just customs duties. It is a complex trade matter intertwined with broader trade policies. Bangladesh conducts its global trade in compliance with World Trade Organization (WTO) rules. To address the increased tariffs with the U.S., there may need to be policy changes at the global level-applicable not only to Bangladesh but to all trading nations. Hence, mutual understanding and consensus on these issues are essential.
Sakif Shamim noted that the U.S. is one of Bangladesh’s largest export markets. Nearly 20 per cent of Bangladesh’s total garment exports go to the American market. In the absence of a free trade agreement (FTA), Bangladesh is already facing tough competition in the U.S. market. The newly imposed tariffs could make Bangladeshi products even less competitive, threatening a decline in export earnings. Furthermore, this change could have a direct impact on numerous factories-especially those heavily reliant on U.S. buyers. Many such factories could struggle to stay afloat, affecting thousands of workers.
