Eminent economist and Chairman of the Centre for Policy Dialogue (CPD) Professor Rehman Sobhan on Thursday urged Bangladesh to seek alternative export markets to counter the uncertainty in global trade created by US President Donald Trump's new tariff policy.
“The United States is Bangladesh’s largest export market. But the level of uncertainty there is now so great that we must adopt a strategy to increase exports to the European Union, Canada, Australia, Japan and emerging markets in Asia,” he said at a CPD dialogue.
The dialogue, titled ‘Trump's Reciprocal Tariffs and Bangladesh: Implications and Response’, was held at a hotel in Gulshan, Dhaka.
“Asia will be the biggest growth centre in the world economy over the next 25 years. If this region is not prioritised, we risk falling behind,” Prof Sobhan added.
The keynote paper was presented by CPD Distinguished Fellow Prof Mostafizur Rahman, who highlighted that in 2024, the US collected approximately $1.27 billion in tariffs on Bangladeshi products, while Bangladesh received only $180 million in tariffs on US imports.
“This issue cannot be resolved simply by reducing tariffs. In fact, such measures could lead to even greater tariff-related losses,” he said.
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The CPD underscored the importance of closely monitoring the impact of US tariffs on Bangladesh’s export competitiveness, especially in comparison with countries like Vietnam. It also emphasised the need to engage with the US through the Trade and Investment Cooperation Forum Agreement (TICFA).
Prof Mostafizur also stressed the importance of pursuing a new trade agreement with the US administration and strengthening diplomatic engagement to address the challenges posed by Trump’s tariff policy. At the same time, Bangladesh must explore strategic alternatives, he said.
Currently, Bangladesh imposes an average tariff and other duties of 6.2 percent on US imports, which drops to 2.2 percent when rebates are factored in. In contrast, US tariffs on Bangladeshi imports average 15.1 percent.
Mustafa Abid Khan, former member of the Bangladesh Tariff and Trade Commission, said, “This is not a reciprocal tariff. We need to understand the US position and continue seeking a solution through dialogue.
Signing a free trade agreement (FTA) with the US is not straightforward. They have repeatedly stated that Bangladesh is not ready yet.
Speakers at the dialogue called for the development of a strategic commercial plan and greater export diversification in response to the imposition of counter-tariffs by the US.
CPD Executive Director Dr Fahmida Khatun moderated the event, participated by representatives of trade bodies and labour leaders.