US President Donald Trump has announced a sweeping “reciprocal tariff” policy targeting nations that, in his view, impose higher import duties on American goods.
Bangladesh is among the countries hit hardest, with a steep 37% tariff imposed on a wide range of exports including garments and footwear.
The move is expected to have a profound impact on Bangladesh’s export sector, particularly the ready-made garment industry, which constitutes 87% of the country’s total exports to the US.
Industry insiders and analysts alike have warned that the new tariff regime could severely dent Bangladesh’s competitiveness in its largest export market.
Speaking at a press briefing held in the White House Rose Garden at 4pm local time (2am Bangladesh time) 2 April, Trump declared the day “Economic Independence Day” for the United States.
He argued that countries like China impose up to 67% duties on American goods and that Washington would now respond with proportionate measures, applying an average minimum tariff of 10% across the board.
“For China’s 67%, the US will impose 34%. Other countries will face similar calculations,” Trump stated. “There’s no cause for panic—this is simply fairness.”
To determine the new tariff rates, the Trump administration employed a self-styled formula: first calculating the US trade deficit with a particular country, then dividing that by the total exports from the said country to the US.
This percentage figure was interpreted as the effective tariff rate levied on the US, and Washington has chosen to retaliate with half that figure.
In Bangladesh’s case, US Census Bureau data shows that the country exported goods worth $8.36 billion to the US in 2024, while importing $2.21 billion worth.
The resulting trade surplus of $6.15 billion, when divided by total exports, yields 73.56%. The US has responded with a 37% tariff on Bangladeshi goods.
This comes atop the existing average duty of 15%, pushing the potential tariff burden to around 52%. Bangladesh’s flagship exports—primarily apparel—are now likely to bear the brunt of this sudden policy shift.
Data from the Export Promotion Bureau and National Board of Revenue indicates that garments account for 82% of Bangladesh’s exports to the US, followed by headgear, leather goods, shoes, fish, grain, and furniture. The steep new tariff threatens to erode Bangladesh’s price competitiveness, especially in comparison to rival garment exporters.
Bangladesh imported $2.53 billion worth of goods from the US in the 2023–24 fiscal year, including iron and steel, energy products, cotton, oilseeds, nuclear reactors, and medical equipment.
Reacting to Trump’s announcement, the interim head of the Bangladeshi government, Dr Muhammad Yunus, said the administration had begun scrutinising the methodology behind the tariffs and reviewing applicable US duties on goods imported into Bangladesh. Speaking from Bangkok, his press secretary Shafiqul Alam told BSS that Dhaka remained optimistic about a diplomatic solution.
“We are reviewing the matter and are confident of finding a mutually beneficial resolution,” said Alam. “We are committed to protecting the interests of both nations and maintaining a strong bilateral relationship.”
In a post on his verified Facebook page, Alam added that the National Board of Revenue is assessing the tariffs Bangladesh imposes on American imports, aiming to determine fair alternatives. “The United States remains our closest ally and our largest export destination,” he wrote.
Trade analysts suggest that, despite the blow, Bangladesh remains relatively competitive compared to some rivals. Vietnam, for instance, faces a 46% tariff, while Cambodia’s stands at 49%, Sri Lanka 44%, Pakistan 30%, Indonesia 32%, and India 27%.
However, global reactions have been swift and sharp. World leaders and trade officials have voiced concern over Trump’s tariff spree, warning that it may plunge global trade into a new era of economic nationalism. Several nations have signalled plans to retaliate, raising fears of a full-blown trade war.
Whether cooler heads prevail or the world slides into a deeper trade confrontation remains to be seen. But for now, the pressure on exporters, diplomats, and trade strategists has only just begun.
