US Tariff Imposition in Bangladesh: Opportunities and Way Forward
Abstract
The study explores the wide-ranging impact of recent U.S. tariff impositions on Bangladeshi exports, with a focus on the ready-made garment (RMG) sector, which accounts for over 87% of the country’s total exports. Many studies have assessed the economic effects of tariff and policy responses; they have often overlooked the strategic opportunities that such disruptions may present. This research fills that gap by adopting a mixed-methods approach, combining quantitative data from 108 exporters and importers with qualitative insights from interviews with government officials, trade bodies, and think tanks. The findings identify major challenges, such as high logistics costs, non-tariff barriers, labor and environmental compliance issues, and regulatory uncertainty. However, they also reveal opportunities for export diversification in sectors like pharmaceuticals, ICT, agro-products, leather goods, and sustainable branded items, alongside prospects for growth in digital trade and bilateral engagement through mechanisms like TICFA. The study recommends strengthening trade diplomacy, advocating for GSP reinstatement, modernizing trade infrastructure, and aligning domestic regulations with global standards to ensure competitiveness post-LDC graduation.