Bangladeshi business leaders and economists have raised concerns over the potential fallout from proposed US tariffs, with one business leader describing the situation as the worst he has seen in his 40-year career.
“In my 40 years in business, I have never faced a crisis like this,” commented AK Azad, former president of the FBCCI and managing director of the Ha-Meem Group, at a roundtable titled: “US Counter Tariffs: Which Path for Bangladesh?” organised by Bangla daily Prothom Alo at a city hotel on Sunday.
Azad criticised the government’s lack of transparent and effective action. “Major U.S. buyers are actively following and lobbying on the ongoing tariff negotiations with the US government. Some have told us frankly—not to expect a positive outcome. Even they are losing hope,” he said.
Sharing a recent incident, Azad revealed, “A brand I export $80 million worth of products to has emailed me, asking how much of the new tariff I would absorb starting from the 1st of next month. My net income from that is only $1.37 million. If I have to absorb 35% of $80 million, what will I be left with?”
He further criticized the government’s response: “We spoke to the government, requested the hiring of lobbyists, even contacted the Prime Minister’s Office. At one point, we were told that 95% of the issue was resolved. But the reality looks very different.”
Lack of Direction and Clarity
Syed Nasim Manzur, president of the Leather Goods and Footwear Manufacturers & Exporters Association, said the business community is “confused” about the government’s direction on the tariff issue.
Dr. Selim Raihan, executive director of the South Asian Network on Economic Modeling (SANEM), pointed out Bangladesh’s inexperience in international negotiations. “Compared to other countries, our bargaining has been disappointing,” he said.
Despite the presence of non-disclosure agreements, countries like Malaysia are holding stakeholder meetings to navigate complex issues, he added.
Dr. Raihan stressed the importance of geopolitical balance, given Bangladesh’s strategic relationships with China, India, and the US “In this new era of globalization, bilateral trade and strategic partnerships are becoming increasingly important. Bangladesh must evaluate where it holds geopolitical advantages and in which sectors it can take a stronger position in the US market.”
He also warned of challenges ahead: “Sectors like leather and leather goods may face severe pressure. The proposed 35% tariff on Bangladesh, compared to even higher rates on Chinese goods and 40–45% on Cambodia, indicates how serious the situation is.”
WTO Seen as Ineffective
Criticizing the global trade framework, Dr. Raihan said, “The WTO has become largely ineffective. The way the US has imposed counter-tariffs clearly shows they are not following WTO rules.
Other powerful countries—India, Vietnam, Malaysia, Brazil—are also pursuing bilateral negotiations to safeguard their interests. Bangladesh should do the same rather than depending solely on WTO mechanisms, he added.
Call for Immediate Government Action
Anwar-ul-Alam Chowdhury Parvez, president of the Bangladesh Chamber of Industries (BCI), strongly criticized the government’s lack of transparency. “Back in April, we were told that the government was working on it, but no updates were shared with the private sector,” he said.
Chowdhury added that the private sector had tried to engage directly with the government and even approached international lobbying firms to help. “We believe Bangladesh should follow what other countries are doing in such circumstances. It’s essential to involve stakeholders from each affected sector in the negotiation process.”
He concluded by emphasizing the need for urgency. “The government must act swiftly with the support of industry leaders. We also need to monitor how competitors like Vietnam are responding to ensure our tariff rates remain at least somewhat competitive.”