Seize 90-day US tariff pause opportunity or risk trade setback: Experts

Experts have urged the government to act swiftly during the 90-day suspension of US tariffs on Bangladeshi goods, warning that failure to secure a more favourable trade arrangement before the window closes could jeopardise the country's trade competitiveness.

During a discussion at the Gulshan Club today (12 April), a group of Economists, business leaders, and policymakers emphasised the need for coordinated action involving consultations with industry stakeholders to understand the US' stance, assess the extent of concessions Bangladesh could offer, and consider increasing imports from the US in return.

The Bangladesh Textile Mills Association (BTMA) organised the roundtable discussion on "US Tariffs on Bangladesh's Exports: Reciprocal Strategies and the Way Forward for Negotiations." BTMA President Showkat Aziz Russell moderated the event, while Policy Exchange Chairman Mashrur Reaz presented the concept paper.

On 2 April, the US imposed a steep 37% retaliatory tariff on imports from several countries, including Bangladesh. A week later, on 9 April, Washington announced a 90-day suspension of the decision, keeping only the standard 10% tariff in place for now.

"This pause gives us a strategic window," Mashrur Reaz said. "But what happens after 90 days is uncertain. We need to proactively explore what we can offer in exchange and engage on multiple fronts – diplomacy, trade talks, and market-based strategies."

He urged the government to consider offering reciprocal concessions, such as bonded warehouse facilities for US cotton exporters, and to reduce the trade imbalance by increasing imports from the US.

Reaz also advised pursuing a multipoint engagement strategy, including initiating diplomatic negotiations, increasing imports to reduce the trade gap, and holding discussions with buyers to explore market-based solutions.

"The private sector and government must present a united front," he added, noting that contradictory statements could weaken Bangladesh's negotiating position.

BTMA's Russell echoed the urgency, suggesting that Bangladesh leverage its position as a key importer of US cotton by producing cotton-based garments that could qualify for duty-free access.

"We need robust policy support, more foreign direct investment, and incentives to enhance competitiveness in the textile sector," he said.

Md Anwar Hossain, vice chairman of the Export Promotion Bureau and administrator of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the tariff issue has presented both a challenge and an opportunity. 

He highlighted longstanding reform proposals submitted to the National Board of Revenue, suggesting that now is the time for implementation.

"The government's attitude is more positive now. We must act within these 90 days to position ourselves advantageously," he said.

Anwar-ul-Alam Chowdhury, president of the Bangladesh Chamber of Industries, said it is vital to approach the issue from the US' perspective and consider what Bangladesh can offer post-LDC graduation.

"For long-term sustainability, competitiveness is key. We must also think ahead to the post-LDC scenario," he said.

Hafizur Rahman, administrator of the Federation of Bangladesh Chambers of Commerce and Industry, said the US has previously rejected Free Trade Agreement proposals from Bangladesh, citing weaknesses in areas such as labour rights and intellectual property.

He noted that other countries are already pursuing FTAs to gain trade advantages. "We must explore regional and bilateral FTA options. Even a product-based zero-duty deal with the US could be a breakthrough."

Rahman also called for the removal of non-tariff barriers and diversification into regional markets to reduce dependency on the US.

M Muhibuzzaman, managing director of ACI Healthcare, voiced concern that if pharmaceutical products fall under the reciprocal tariff regime, the impact could be severe.

"Pharma is currently exempt from US tariffs, but clarity is needed. With a thoughtful approach, we can work towards a win-win outcome," he said.