On April 2, 2025, the United States announced tariffs of 37% on a range of imported goods, including apparel and textiles, a sector that accounts for over 80% of Bangladesh’s export earnings. Trump claims 10% tariffs on all nations and even higher rates of up to 50% on specific countries with which they have trade deficits.

The decision, justified by the Trump administration as a measure to protect domestic industries, promote fair trade, and protect jobs, which will expand the US economy, poses a significant challenge for Bangladesh’s economy. With the US being Bangladesh’s single largest export destination (accounting for nearly $10 billion in exports in 2023), Bangladesh must respond strategically to mitigate economic shocks while securing long-term trade resilience. 

The US has been gradually shifting its trade policies to reduce dependency on Asian manufacturing hubs, encouraging US consumers to purchase more American goods, increasing the amount of tax raised, and leading to significant levels of investment in the nation, favoring domestic organizations. The new tariffs, reportedly ranging from 10% to 50% in different countries, targeting 37% specific categories of ready-made garments (RMG) of Bangladesh, come amid growing global trade protectionism. For Bangladesh, the new measures could further squeeze profit margins in an already competitive sector, which was used to doing business after losing GSP facilities, and faced an average of 15% regular tariffs on the apparel industry

In a sector that employs over 4 million workers, the majority of whom are women, even a 10% higher tariff may restrict export growth by at least 5% annually, putting thousands of jobs in danger, according to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). After imposing 37% tariffs, the........

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