Trump’s Tariff Shock: A Wake-Up Call for Bangladesh
President Donald Trump’s imposition of a 37% retaliatory tariff—later reduced to 35%—on select Bangladeshi exports has sent a clear and urgent message: overdependence on a single export market is a risky gamble. For Bangladesh, whose ready-made garments (RMG) industry relies heavily on the U.S., this move is nothing short of a wake-up call.
Major exporters like Fortune Apparels, which send 100% of their products to the U.S., now face canceled orders, shrinking demand, and a potential loss of long-term clients. Meanwhile, competitors such as Vietnam enjoy a much more favorable 20% tariff rate—prompting global retailers to rethink their sourcing strategies.
Despite months of diplomatic back-and-forth, the modest 2% concession barely narrows the competitive gap. The negotiation process was also marked by a lack of transparency, raising concerns about whether broader consultation with trade experts and industry leaders could have produced a better outcome.
This episode highlights the urgent need for a strategic shift. Bangladesh must:
- Diversify export destinations beyond the U.S.
- Push for tariff parity with competitors.
- Involve economists, legal experts, and private sector voices in trade talks.
- Ensure transparency to build stakeholder trust and preparedness.
This crisis could either undermine years of export growth or become the turning point toward a more resilient, diversified, and future-proof trade strategy. The choice—and challenge—is now ours.
