Shafi Md Mostofa
On July 8, the U.S. imposed a revised 35 percent tariff on Bangladeshi goods. “Please understand that the 35% tariff is far less than what is needed to eliminate the Trade Deficit disparity we have with your Country,”
Trump wrote in a letter to Muhammad Yunus, chief advisor of Bangladesh’s interim government. Earlier in April, the U.S. had imposed a 37 percent tariff, increasing it from 15 percent.
To understand the implications and politics of tariffs, a comparative look at Bangladesh’s business competitors is essential. Bangladesh exports around $8 billion worth of goods to the United States — the highest volume to a single country.
Over $6 billion of that consists of garments, meaning the industry would be heavily impacted. Vietnam is Bangladesh’s key competitor, and the United States has offered them a reduced tariff rate of 20 percent.
Finance Advisor Salehuddin Ahmed noted that Bangladesh’s trade deficit with the U.S. is only about $5 billion, while that of Vietnam’s with the U.S.
stands at $125 billion. “Even so, the U.S. has agreed to offer Vietnam some concessions,” he said. Bangladesh has a “much smaller deficit,” he pointed out,
adding that “there is no justification for imposing such a high tariff on us. We will continue to negotiate.”
Clearly, politics are at play. This is evident from the statement of Power and Energy Adviser Fouzul Kabir Khan. “Not just tariffs, there have been discussions on non-tariff barriers as well
They [the U.S.] are prioritising their national security… A framework is being worked out in this regard, and the matter is under discussion”, he said.
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