Bangladesh deserves fair trade, not punitive tariffs
Amid shifting US trade policies, Bangladesh calls for renewed dialogue and mutual respect to safeguard a partnership that has long advanced economic growth, stability, and shared global interests
As the Trump administration moves to reimpose sweeping tariffs under its "America First" trade doctrine, Bangladesh now faces the threat of a 37% tariff on its exports to the United States. This is no small matter. Our national interests—our industries, workers, and economic momentum—are directly at stake. But so too is the American consumer's well-being.
Bangladesh is no longer a fringe player in global trade. We are the second-largest exporter of ready-made garments (RMG) in the world, generating over $47 billion in export earnings last fiscal year, 84% of our total exports. The United States remains our single-largest export destination, purchasing over $10 billion in Bangladeshi goods annually.
The imposition of a 37% tariff would undercut not just our trade—it would jeopardise the livelihoods of millions of our citizens, especially the four million workers, most of them women, who power our RMG sector.
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Yet, this is not a one-way street. Bangladesh is not only a reliable trading partner—we are a strategic ally in regional stability, global peacekeeping, and economic cooperation. Our poverty rate has dropped from over 40% in 2005 to below 20% today.
Our GDP exceeds $460 billion, and we are set to graduate from Least Developed Country (LDC) status by 2026. We are a nation of strength, sacrifice, and vision—and we will defend the dignity of our progress.
Respecting agreements, reviving dialogue
Bangladesh and the United States already have a platform for engagement—the Trade and Investment Cooperation Forum Agreement (TICFA) signed in 2013. Rather than resorting to unilateral tariff escalation, we urge the Trump administration to reinvigorate TICFA as the forum for resolving trade concerns, enhancing compliance, and building long-term cooperation.
The China factor: A new opportunity
If the United States continues its tariffs on Chinese imports, Bangladesh becomes a natural, trustworthy alternative, especially in the garment sector, where global retailers seek sourcing stability. Our RMG products are already integral to American wardrobes.
Fair trade with Bangladesh helps keep shelves stocked and prices stable, benefiting American consumers and helping to contain inflation.
A trade relationship that already benefits the US
This is not charity—it's good business. In the past five years, Summit and other Bangladeshi power companies have purchased over $1 billion worth of GE turbines made in the United States.
Biman Bangladesh Airlines has acquired—and plans to purchase more—Boeing aircraft, demonstrating our confidence in American aviation. And now, Summit is set to supply Bangladesh with $1 billion per year in US LNG, deepening our energy ties.
Beyond trade, our cooperation now spans the frontiers of space and technology. On 8 April, Bangladesh signed the Artemis Accords with NASA, joining a visionary global initiative for peaceful space exploration. Bangladesh is in talks with Starlink, and Summit is committed to being a national carrier of next-generation satellite internet, bringing world-class connectivity to rural and underserved areas of our country. These are not symbolic partnerships—they are strategic investments in a shared future.
Responsible reform, not rhetoric
We are not blind to areas of improvement. Bangladesh proposes a verifiable labour and compliance reform roadmap, supported by US technical expertise and monitored independently. Let us build a future of responsible trade together—not through pressure, but through partnership.
Tariffs punish the wrong people
A 37% tariff would not hurt the powerful. It would hurt women who stitch for survival, small exporters who built their businesses from nothing, and families who dream of a better life. It would also hurt American consumers, who will face higher prices for everyday essentials.
We urge the US to consider targeted exemptions for critical sectors like garments, textiles, leather goods, and pharmaceuticals—areas where Bangladesh complements US supply chains and supports affordability.
Building a future, not barriers
Bangladesh is building the infrastructure of tomorrow—100 economic zones, deep-sea ports, smart grids, and digital corridors. We invite US companies to invest here, not just for low cost, but for long-term value. Let us jointly build supply chains that are ethical, secure, and future-ready.
A call to common sense and shared purpose
Bangladesh and the US already cooperate in areas like counterterrorism, peacekeeping, climate resilience, and pandemic response. Let us now extend that cooperation to the economic sphere by ensuring trade remains fair, stable, and strategic.
This is not a plea. It is a principled proposal.
We are a proud people, born of struggle, and committed to dignity. We believe in commerce that uplifts, not punishes. Let it not be said that Bangladesh was penalised for being hardworking, peaceful, and ambitious.
Let this be the moment when trade builds a bridge, not a barrier.
Let fair trade define the future.
Bangladesh is ready.
Muhammed Aziz Khan is the Chairman of Summit Group
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.
