In early 2025, the Trump administration imposed steep tariff hikes on several countries, with Bangladesh being one of the hardest hit in South Asia.

The tariffs on Bangladeshi goods have soared to 37%, significantly impacting its export-led economy, which is heavily reliant on garments and generic pharmaceuticals. Bangladesh exports approximately $8.4 billion worth of garments to the United States annually, making it a leading supplier to the U.S. fashion market.

The garment sector is critical to Bangladesh's economy, accounting for over 80% of total export revenues, employing about 4 million people, and contributing around 10% to the national GDP.

The new tariffs pose a significant threat to Bangladesh's apparel industry, which is already facing challenges due to domestic political unrest. Garment exporters are concerned about potential order cancellations and are seeking government assistance to mitigate the impact.

The U.S. tariffs are part of Trump's "Liberation Day" economic initiative, aimed at addressing what the administration perceives as unfair trade practices by imposing reciprocal tariffs on countries with large trade deficits with the U.S..

The economic implications for Bangladesh are severe, with fears that U.S. buyers may seek cheaper alternatives elsewhere, potentially leading to job losses and reduced factory output. The situation is exacerbated by ongoing political instability in Bangladesh, which has been experiencing significant social unrest since the ouster of Sheikh Hasina.

Trump's tariff measures represent a substantial blow to Bangladesh's economy, highlighting the vulnerability of labour-intensive export industries in the face of global trade policies.

Agencies