High-level meeting begins to address Trump’s tariffs on Bangladesh

In response to the US administration's imposition of a 37 per cent reciprocal tariff on Bangladeshi products, a high-level government meeting convened under the leadership of Finance Adviser Salehuddin Ahmed on Sunday (April 6). 

The meeting, which began in the meeting room of the Finance Ministry at approximately 3:35pm, brought together key stakeholders to assess and strategize a response to the new trade measures announced by US President Donald Trump.  

Several top officials, including the Commerce Adviser, Planning Adviser, Power and Energy Adviser, Press Secretary to the Chief Adviser, Governor of Bangladesh Bank, Secretary of the Commerce Ministry, Chairman of the National Board of Revenue (NBR), and Finance Secretary are attending the meeting.

Economists and business leaders are also present to provide insights into the potential economic impact of the tariffs.  

The primary focus of the discussions was to evaluate the implications of the 37 per cent tariff hike, which comes on top of the existing 15 per cent average tariff on Bangladeshi goods entering the US market. 

Exporters have expressed fears that the increased tariffs could severely disrupt Bangladesh's access to its largest export destination, particularly affecting the ready-made garment (RMG) sector, which accounts for 80 per cent of the country’s total exports.  

The tariff announcement has sparked widespread concern globally, with world leaders and media outlets weighing in on the potential ramifications. International news organisations such as the BBC, CNN, and the New York Times have extensively covered the reactions to Trump’s decision.  

- The European Union (EU) described the move as a significant blow to the global economy.  

- Australia labeled the decision as "unfriendly."  

- UK Prime Minister Keir Starmer warned that the economic fallout from the tariffs would be felt worldwide.  

- China vowed retaliation, pledging to impose counter-tariffs in response to Trump’s measures.  

These developments underscore the escalating tensions in global trade relations, with many observers noting that Trump’s actions have effectively ignited a global trade war.  

Data from Bangladesh Bank highlights the importance of the US market to Bangladesh’s economy. In the fiscal year 2023-24, bilateral trade between Bangladesh and the US stood at $10.13 billion, with Bangladesh exporting goods worth $7.59 billion and importing $2.53 billion. This trade surplus underscores Bangladesh’s reliance on the US as a critical export destination, accounting for 18 per cent of the country’s total exports.  

Breakdown of Bangladesh’s exports to the US 

- Ready-Made Garments (RMG): $7.43 billion (approximately 98 per cent of total exports to the US).  

- Other sectors: Leather and leather products, pharmaceuticals, agricultural goods.  

Major imports from the US 

- Steel: $601.4 million.  

- Mineral fuels: $595.2 million.  

- Cotton: $361 million.  

- Oilseeds: $341 million.  

- Nuclear reactors: $111 million.  

Over the past decade, Bangladesh’s exports to the US have grown significantly, reflecting the country’s increasing integration into global supply chains. Key figures from recent fiscal years include:  

- 2022-23: Exports: $9,701.34 million; Imports: $2,344.26 million.  

- 2021-22: Exports: $10,417.72 million; Imports: $2,825.74 million.  

- 2020-21: Exports: $6,974.01 million; Imports: $2,268.20 million.  

- 2019-20: Exports: $5,832.30 million; Imports: $2,126.10 million.  

- 2018-19: Exports: $6,876.29 million; Imports: $1,773.50 million.  

- 2017-18: Exports: $5,983.31 million; Imports: $1,704.66 million.  

Despite this growth, Bangladesh’s exports remain heavily concentrated in the RMG sector, making the economy vulnerable to external shocks like the newly imposed tariffs.