Trump's tariffs will contribute to a more volatile trading environment: Selim Raihan
In his immediate reaction to Trump’s newly imposed tariffs, Selim said to navigate this new landscape, Bangladesh must rethink its domestic trade policies, engage actively in the reformation of the global trade system, and enhance trade integration with key partners to secure its position in the evolving world trade order
The new tranche of tariffs imposed by US President Donald Trump will create a more volatile and unpredictable global trading environment, said noted economist and Dhaka University's economics department Prof Selim Raihan today (3 April).
In his immediate reaction to Trump's newly imposed tariffs, Selim said to navigate this new landscape, Bangladesh must rethink its domestic trade policies, engage actively in the reformation of the global trade system, and enhance trade integration with key partners to secure its position in the evolving world trade order.
"The world has witnessed today an unprecedented shift in the global trading regime with the introduction of reciprocal tariffs by the Trump administration, signalling a potential end, or at least a significant transformation, of the Most Favoured Nation (MFN) principle that has long been a cornerstone of the GATT/WTO framework," Selim, the executive director of South Asian Network on Economic Modelling (SANEM), told The Business Standard.
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Replying to a question, Selim told TBS that the future of this principle remains uncertain as different reciprocal tariff rates are imposed on various US trading partners and tariff rates on specific product categories fluctuate.
"This makes it increasingly difficult to determine the winners and losers among exporting countries in the US market," Selim added.
"For countries like Bangladesh and other developing countries, this shift poses significant challenges, as they may face tougher economic conditions under such an uncertain regime," Selim further said.
During an event in the White House Rose Garden earlier today (3 April), the US president displayed a poster that listed reciprocal tariffs, including 37% on Bangladesh, 26% on India, 34% on China and 20% on the European Union, as a response to duties put on US goods, reported Reuters.
Trump also said he would impose a 10% baseline tariff on all imports to the United States and higher duties on some of the country's biggest trading partners, in a move that ratchets up a trade war that he kicked off on his return to the White House.
