Bangladesh should explore alternative export markets as China is Trump's primary target: Rehman Sobhan

Economist and Chairman of the Centre for Policy Dialogue (CPD) Rehman Sobhan said China is the primary target of US President Donald Trump's tariff policy. 

"The nature of their future relationship has yet to be determined, and it will take more time. This will be the most significant issue for the global economy," he said at a CPD dialogue.

In this context, Bangladesh should focus on exploring alternative export markets over the next five years, he said.

The dialogue, titled 'Trump's Reciprocal Tariffs and Bangladesh: Implications and Response', was held at a hotel in Gulshan, Dhaka.

Rehman Sobhan said he believes that Bangladesh should seek to expand its market within the European Union, utilising its existing competitive advantages. 

"The country will continue to enjoy duty-free access to the EU for several more years. In addition, Bangladesh needs to explore markets in Canada, Australia, and Japan." 

There is also the Asian market, which is expected to become the epicentre of global economic and commercial growth in the coming years, he said, adding that within the next 25 years, Asia is expected to become the largest driver of economic growth.

Rehman Sobhan further said, "The uncertainty created in the global economy due to Trump's tariff policy must be overcome. 

"The bottom line is that the United States is Bangladesh's single largest export market. If such uncertainty persists, we must seek alternatives."

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.

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% on US imports, which drops to 2.2% when rebates are factored in. In contrast, US tariffs on Bangladeshi imports average 15.1%.

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.