Dhaka, May 2025 — Bangladesh’s economy is bracing for a significant setback following the imposition of new tariffs by U.S. President Donald Trump. Although a 90-day suspension on implementation offers a temporary reprieve, the long-term consequences are expected to be severe, according to a report released Thursday by the United Nations Conference on Trade and Development (UNCTAD).
The report, titled “Sparing the Vulnerable: The Cost of New Tariff Burdens,” highlights that countries like Bangladesh—despite accounting for only 0.3% of the U.S. trade deficit—are being disproportionately affected by the revised tariff policies. These changes are driving up export costs and making market access to the United States more difficult, particularly in key sectors like ready-made garments and agriculture.
UNCTAD forecasts that even a blanket 10% tariff on U.S. imports could result in a sharp rise in country-specific tariff rates as early as July. For nations like Bangladesh, the effective import tariff could rise as high as 44%, posing serious risks to the country’s export-led economy.
The report emphasizes the urgent need for international cooperation, tariff relief policies, and more accessible trade terms for developing nations. Without such measures, the world could face a new wave of trade inequality, ultimately hindering global development.
In response to these challenges, Bangladesh’s National Board of Revenue (NBR) is planning to propose tariff concessions on 100 U.S. products in the upcoming national budget. The goal is to strengthen bilateral trade ties with the United States and to negotiate reductions in high tariffs on Bangladeshi goods in the U.S. market.
Economists warn that unless mitigating measures are taken, the impact of these new U.S. tariffs could undermine Bangladesh’s export competitiveness and stall economic progress in vulnerable sectors.