Trump's tariff process faulty, but a wake-up call for Bangladesh: Fahmida Khatun

The process of imposing a 37% tariff on Bangladesh is flawed, but US President Donald Trump's high-tariff policy serves as a wake-up call for the country, said Dr Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD).

"It is a wake-up call because, after LDC graduation in 2026, we won't enjoy the tariff benefits we currently do for long. Therefore, it is crucial that we prepare to enhance our trade competitiveness," she said while addressing a shadow parliament session organised by Debate for Democracy at FDC in the capital's Tejgaon area today (12 April).

However, the 90-day suspension of retaliatory tariffs provided some relief for Bangladesh. During this time, it is crucial to strengthen trade diplomacy and focus on enhancing domestic capacity to mitigate potential risks, Fahmida said.

"If the investment climate is unfavorable and protests turn violent, foreign investments will be deterred. Institutional reforms need to be implemented. Political stability and law and order are key to fostering a positive investment environment," she said.

Fahmida said, "A tariff storm is sweeping across the globe. The Trump administration has shown little regard for rules or procedures in raising tariffs. The conflicting positions between the US and China over tariff imposition suggest that a trade war has begun. Bangladesh is not immune to this challenge either."

The event, organised to discuss the challenges arising from the recently announced high US tariffs, was presided over by its Chairman, Hasan Ahmed Chowdhury Kiron.

Hasan Ahmed said, "The three-month suspension of tariffs has provided temporary relief for Bangladesh's exports. Exporters are regaining lost orders. The 145% US tariff on Chinese goods is suspending their orders, which could open up opportunities for Bangladesh's exports."

"Additionally, Chinese investors are showing interest in Bangladesh. To manage trade amid high tariffs, Chinese President Xi Jinping will visit Southeast Asia next week. If Bangladesh regains GSP benefits through diplomatic efforts, our export sector will expand," he said.

Hasan made 10 recommendations to address tariff-induced challenges, including diversifying export products beyond reliance on RMG and finding alternative markets; strengthening trade diplomacy with the US to maintain exports of Bangladeshi products; and forming an Economic Consultation Group with economists, market analysts, and business representatives.

At the event, students of different universities debated how Bangladesh could overcome the challenges of high US tariffs. The debaters from Bangladesh University of Business and Technology emerged victorious, defeating the debaters from Manarat International University.