In a significant shift in trade policy, US President Donald Trump has announced an increase in tariffs on Bangladeshi goods from an average of 15% to 37%. The decision, revealed during a press conference at the White House on Wednesday at 4 PM local time (2 AM Bangladesh time), is part of a broader tariff hike affecting multiple countries.
Under the new tariff structure, India will face a 26% duty, Pakistan 29%, China 34%, the European Union 20%, and Myanmar 44%, among others. Notably, Cambodia will be hit with the highest tariff at 49%, while the UK, Brazil, and Australia will see a 10% rate.
Labeling the move as a step toward “economic independence,” Trump declared the day as America’s “Economic Freedom Day,” emphasizing that the US had long awaited such a shift in trade policies. He further argued that, in trade, “sometimes friends can be worse than enemies.”
A key highlight of the announcement was the imposition of a 25% tariff on all imported foreign automobiles. Trump pointed out that while 80% of South Korean-made cars are sold within South Korea and 90% of Japanese vehicles are manufactured domestically, American vehicles struggle to penetrate these markets.
The policy aligns with Trump’s “America First” agenda, which he described as a “rebirth” for American industries. He argued that other nations have imposed heavy tariffs and non-tariff barriers on US goods for decades, necessitating reciprocal action.
For Bangladesh, the consequences could be severe. The US is one of the largest markets for Bangladeshi apparel, with exports amounting to $8.4 billion annually. Last year, apparel exports to the US dropped to $7.34 billion. Economists warn that the steep tariff increase could significantly impact Bangladesh’s textile and garment sector, a key driver of the country’s economy.
LND/NE
