To say that US President Donald Trump’s sweeping new tariff policy is unprecedented in the history of global trade would be an understatement. The tariffs have seemingly affected each and every country in the world to some capacity including Bangladesh, a country which has been undergoing a pointed political transition amidst historic levels of inflation.
The current US administration’s new tariff policy has threatened to completely upend the global order, at least when it comes to trade, however, for countries such as Bangladesh, the consequences can be devastating. As things stand, the United States is already the principal destination for our RMG industry, an industry which still stands as the bedrock of our economy. Under the new policy, Bangladesh will have to contend with a 37% reciprocal tariff on all of our exports, which means reduced consumption on Bangladeshi-made goods by US consumers due to higher prices.
This stands to impact our RMG sector especially hard, and given just how much our economy relies on this one sector. This is indeed the kind of external shock which we have been editorializing about for a decade when discussing just how stagnant our export basket has been. Relying on one major sector to prop up an overwhelming majority of the economy was always going to backfire, and we hope the current Bangladeshi administration harnesses this momentum to help our export basket become much more diversified.
However, it is good to see our foreign diplomacy spring into action as soon as the new tariffs were announced, as the relevant authorities are now reviewing tariffs on US imports to Bangladesh and perhaps even considering the removal of tariffs on certain goods imported as a form of concession to the US administration.
Since last August, perhaps even longer when we take into account just how poor our economy has been faring, Bangladesh has been dealt challenge after challenge. And yet the nation remains unwavering. The recent US tariffs are just another set of challenges that we must contend with.
The current US administration’s new tariff policy has threatened to completely upend the global order, at least when it comes to trade, however, for countries such as Bangladesh, the consequences can be devastating. As things stand, the United States is already the principal destination for our RMG industry, an industry which still stands as the bedrock of our economy. Under the new policy, Bangladesh will have to contend with a 37% reciprocal tariff on all of our exports, which means reduced consumption on Bangladeshi-made goods by US consumers due to higher prices.
This stands to impact our RMG sector especially hard, and given just how much our economy relies on this one sector. This is indeed the kind of external shock which we have been editorializing about for a decade when discussing just how stagnant our export basket has been. Relying on one major sector to prop up an overwhelming majority of the economy was always going to backfire, and we hope the current Bangladeshi administration harnesses this momentum to help our export basket become much more diversified.
However, it is good to see our foreign diplomacy spring into action as soon as the new tariffs were announced, as the relevant authorities are now reviewing tariffs on US imports to Bangladesh and perhaps even considering the removal of tariffs on certain goods imported as a form of concession to the US administration.
Since last August, perhaps even longer when we take into account just how poor our economy has been faring, Bangladesh has been dealt challenge after challenge. And yet the nation remains unwavering. The recent US tariffs are just another set of challenges that we must contend with.