Staff Reporter :
The imposition of a 37 per cent tariff on Bangladeshi exports is flawed; however, the protectionist trade policies taken by the US President Donald Trump serve as a critical wake-up call for Bangladesh, remarked Dr Fahmida Khatun, Executive Director of the Centre for Policy Dialogue (CPD).
“This is a wake-up call because, following our graduation from Least Developed Country (LDC) status in 2026, we will no longer enjoy the preferential tariff benefits currently available.
It is, therefore, imperative that we prepare by enhancing our trade competitiveness,” she stated while addressing a shadow parliament session organised by Debate for Democracy, held at the FDC in Dhaka on Saturday.
Dr Khatun noted that the 90-day suspension of retaliatory US tariffs has offered Bangladesh a temporary reprieve. She emphasised that this period should be utilised to strengthen trade diplomacy and to develop domestic industrial capacity in order to mitigate potential future risks.
“A tariff storm is sweeping across the global economy,” she said. “The Trump administration demonstrated minimal regard for established rules or procedures in its tariff escalation. The ongoing conflict between the United States and China over tariff impositions signals the onset of a broader trade war – one from which Bangladesh is not insulated.”
She also warned that political instability and weak institutional frameworks could dissuade foreign investors. “If political stability, rule of law, and institutional reform are ensured, investment levels will likely increase regardless of any political transitions,” she added.
Debate for Democracy Chairman, Hasan Ahmed Chowdhury Kiron, who presided over the event, stated that the temporary suspension of the US tariffs has provided momentary relief and has led to the resumption of certain purchase orders.
Kiron further noted that Bangladesh may be positioned to capitalise on the opportunities arising from the imposition of a 145 per cent tariff on Chinese goods, potentially filling the supply void in certain markets.
He also presented ten policy recommendations aimed at strengthening Bangladesh’s trade resilience. These included diversifying export products, seeking the reinstatement of Generalised System of Preferences (GSP) facilities, ensuring timely repatriation of export earnings, and redirecting government incentives from cash disbursements towards utility support and infrastructure development.
The shadow parliament session, titled “Bangladesh Will Be Able to Meet the Challenge of High Tariff Rates in the United States”, concluded with Bangladesh University of Business and Technology emerging as the winner, defeating Manarat International University.
