Trump’s tariff war unlikely to benefit Bangladesh: CPD

Trump’s tariff war unlikely to benefit Bangladesh: CPD

  • 16.03.2025 16:13
  • thedailystar.net
  • Keywords: tariff war, export decline

Prof Mustafizur Rahman, a CPD fellow, says Trump’s tariffs are unlikely to boost Bangladesh exports as China and Bangladesh supply different garment types to the U.S. He warns a global tariff war could harm economic growth and reduce demand for Bangladeshi products in the U.S. market.

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Context

Analysis of Trump’s Tariff War Impact on Bangladesh

  • Key Expert Opinion: Prof Mustafizur Rahman (CPD) states Trump’s tariff policies are unlikely to benefit Bangladesh.
  • Export Prospects: Rahman warns that Bangladesh's export opportunities may become "constrained and stagnant."
  • Tariff Impact: Despite assumptions, the 2016 U.S. 25% tariff on China did not directly benefit Bangladesh due to differing product compositions in the RMG sector.
  • Product Segmentation:
    • China exports man-made fibre garments to the U.S., while Bangladesh focuses on cotton-based products.
    • This segmentation limits direct competition and potential benefits for Bangladesh.
  • Global Economic Concerns: Trump’s tariff war could negatively impact global economic growth, including U.S. consumer demand and import需求.
  • Export Dependency Risk: A slowdown in U.S. economic growth may reduce demand for Bangladeshi exports.
  • Long-Term Effects: The ongoing tariff war poses far-reaching adverse effects on global trade and Bangladesh’s export opportunities.
  • Hope for Resolution: Rahman hopes ongoing discussions (e.g., U.S.-Canada talks) will prevent further escalation, which could harm the global economy.