Bangladesh must prepare now for uncertainty after Trump's tariff suspension ends: Fahmida
She says Bangladesh must reform tariffs, reduce bureaucratic complexity, address high production, transport costs
Bangladesh must prepare immediately to cope with uncertainties following the three-month suspension of Trump's tariff hike, Centre for Policy Dialogue (CPD) Executive Director Fahmida Khatun has said.
"Concerns remain, as we don't know what will happen after 90 days," she said while addressing a roundtable titled "Navigating Geoeconomic Challenges in a Complex World: Options for Bangladesh", organised by the Bangladesh Institute of Peace and Security Studies (BIPSS) at a city hotel today (18 May).
Fahmida noted that while the temporary suspension provides some relief, it should serve as a wake-up call for Bangladesh. "This is an eye-opener. It's time for Bangladesh to rationalise its tariff structure."
Keep updated, follow The Business Standard's Google news channel
The global trading landscape was shaken on 2 April when former US President Donald Trump imposed massive tariffs, including an additional 37% tariff on top of existing rates. Though the duty has been lifted temporarily, a flat 10% tariff, along with the existing 16%, still applies.
"37% is too high," said Fahmida. "But even structurally, our end products already face high tariffs."
She said Bangladesh faces steeper tariffs than some of its competitors. "Vietnam and Cambodia are hit harder, but India and Pakistan face lower tariffs. Bangladesh could still face 37% – and that's concerning."
The economist also highlighted that with Bangladesh set to graduate from least developed country status next year, the country would lose trade flexibilities such as non-reciprocal preferences.
"To remain competitive, we must reform tariffs, reduce bureaucratic complexity, and address high production and transport costs," she said.
Fahmida further said there is need for new trade strategies, noting the weakening of multilateral systems. "This shift shows us that the multilateral trading system isn't working. That's why countries are pursuing free trade agreements."
She urged policymakers to prepare for bilateral Free Trade Agreements FTA by addressing tariff issues, as well as labour and environmental compliance standards.
She also called for stronger regional partnerships to navigate global economic shifts.
BIDS Research Director Anwara Begum, East West University Assistant Professor of Economics Parvez Karim Abbasi, and BIPSS President Major General (retd) ANM Muniruzzaman also spoke at the event.
