Tariff cut by US strengthens Bangladesh’s regional trade standing: Industry expert

Bangladesh’s adjustment of its reciprocal tariff rate to 20 per cent on products exported to the United States marks a strategic pivot in global trade, industry expert Mohiuddin Rubel has said, positioning the country more competitively in the regional supply chain.

Mr Rubel, a former director of BGMEA and current Additional Managing Director of Denim Expert Ltd and Managing Director of Bangladesh Apparel Exchange Ltd, noted that this new tariff regime places Bangladesh in a favourable position compared to competitors like Pakistan, Cambodia, and Vietnam.

“This adjustment positions Bangladesh more favourably against competitors like Pakistan, Cambodia, and Vietnam, and sets it apart from higher-tariff countries such as India and China,” Mr Rubel said in a statement. “It could open up new avenues for trade, especially in diverting business away from China.”

He, however, acknowledged that the adjustment may lead to a short-term impact on retail prices, potentially affecting US-bound shipments, but remained confident in Bangladesh’s long-term outlook.

“Historically, Bangladesh has weathered external challenges well, and this move reflects confidence in the country's long-term trade strategy,” he added.

The former BGMEA director also pointed to Bangladesh’s economic performance in the post-Covid era, emphasising its stability and growth despite global volatility. “The steadfast economic trajectory Bangladesh has maintained is commendable. Even as global headwinds persist, the country’s strategic trade decisions and historical strengths are promising indicators for sustained progress.”

To maintain this momentum, Mr Rubel emphasised the need for internal policy stability and government-led support measures, concluding: “With the right steps, Bangladesh is poised for continued advancement and resilience in an evolving economic landscape.”