Dhaka, March 13, 2026 — The United States has launched a new investigation into foreign trade practices aimed at imposing additional tariffs on imported products, and Bangladesh has been included on the list of countries under review. The move has raised concerns about potential uncertainty in Bangladesh’s export sector, particularly the ready-made garment (RMG) industry.
Investigation under Section 301 of the Trade Act
According to the Office of the United States Trade Representative (USTR), the investigation has been initiated under Section 301 of the Trade Act of 1974. The probe will examine foreign production systems, government policies and trade practices to determine whether they create unfair competition for U.S. companies.
Based on the findings of the investigation, Washington may decide to impose new import tariffs on products from the countries involved.
A total of 17 countries and economic regions, including Bangladesh, have been placed under review. Others on the list include China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, South Korea, Vietnam, Taiwan, Mexico, Japan and India.
U.S. Trade Representative Jamieson Greer said the initiative aims to protect American industries and employment. He noted that although previous tariff mechanisms have been affected by court rulings, the government’s overall policy to safeguard domestic industries remains unchanged.
The investigation will examine issues such as excess industrial capacity, government subsidies, wage suppression and other policies that could distort global markets. The United States has also launched a separate probe into the import of products produced through forced labor.
BGMEA expresses concern
Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), described Bangladesh’s inclusion in the investigation as “uncomfortable,” although he does not believe it will pose a major challenge.
Speaking on Thursday (March 12), he said the USTR notice suggests the hearing aims to determine whether countries are involved in unfair trade practices, labor rights violations, export incentives or intellectual property infringements.
“If such allegations are proven, additional tariffs may be imposed on products from the concerned countries,” he said.
Khan argued that intellectual property issues are still limited in Bangladesh’s manufacturing sector and that the market share of American brands in the country remains relatively small. He also said labor rights issues in Bangladesh have improved significantly in recent years.
He added that Bangladesh’s export incentives are relatively limited. Although questions could arise regarding agricultural subsidies, the United States itself provides substantial support to its own agricultural sector.
According to him, the investigation may primarily be aimed at protecting domestic industries in the United States, which remains the world’s largest consumer market. However, he questioned the logic of targeting Bangladesh, noting that its main export to the U.S. is ready-made garments—products that are rarely manufactured domestically in the United States.
Nevertheless, he urged Bangladesh’s relevant government agencies, particularly the Ministry of Commerce, to prepare with necessary data and evidence to address the issue effectively.
New strategy after Supreme Court ruling
The latest U.S. initiative follows a significant ruling by the Supreme Court that struck down earlier tariffs imposed by former President Donald Trump under emergency economic powers.
On February 20, the court ruled by a 6–3 vote that the International Emergency Economic Powers Act (IEEPA) does not grant the president broad authority to impose sweeping import tariffs. The ruling emphasized that the primary authority to set tariffs lies with Congress.
The decision placed several U.S. tariff measures under legal scrutiny and raised the possibility of significant revenue losses for the government. As a result, the administration has been exploring alternative legal frameworks to impose tariffs.
Short-term and long-term tariff plans
The U.S. government is now pursuing a two-phase strategy involving short-term tariff measures and long-term structural actions.
In the short term, Section 122 of the Trade Act of 1974 allows the United States to impose temporary import tariffs of up to 15 percent. Under this provision, a 10 percent additional tariff on global imports took effect on February 24. By law, such tariffs can remain in force for up to 150 days, meaning the measure may expire in late July.
For the long term, authorities plan to continue investigations under Section 301 and impose country- or sector-specific tariffs if necessary. Analysts say such tariffs could range from 25 to 50 percent.
Why it matters for Bangladesh
The issue is particularly significant for Bangladesh because the United States is its largest single export market. A substantial portion of Bangladesh’s exports—especially ready-made garments—is shipped to the U.S.
Industry insiders warn that escalating tariff tensions could affect not only export growth but also investment decisions and production planning.
Former BGMEA director Mohiuddin Rubel said the current 10 percent temporary tariff may remain in effect for the full 150-day period.
“If no new trade agreement is reached with the United States within this time, there is a risk of higher long-term tariffs on Bangladeshi products,” he said.
Possible strategies for Bangladesh
Rubel suggested that Bangladesh could consider several strategies in future trade negotiations. These include seeking tariff benefits by using U.S. cotton in garment production, increasing targeted imports from the United States to reduce the bilateral trade imbalance, and strengthening strategic cooperation in infrastructure and technology.
He said constructive dialogue and trade negotiations could help maintain stable bilateral trade relations and protect Bangladesh’s long-term export prospects.
According to export data, Bangladesh exported goods worth $5.03 billion to the United States between July and February of the current fiscal year, accounting for about 19.5 percent of the country’s total exports. However, exports to the U.S. during this period declined slightly by 0.74 percent compared with the same period of the previous year.
