Impact of U.S. Tariffs on Bangladeshi Exports: Insights from Economists
The imposition of tariffs by President Trump on U.S. imports has raised serious concerns among Bangladeshi economists regarding potential declines in exports and economic downturns. Economists emphasize the need for negotiations with the U.S. and argue that Bangladesh must adapt its trade strategies to mitigate adverse impacts from the tariffs without sacrificing competitiveness in the global market.
President Donald Trump’s imposition of extensive tariffs on U.S. imports has stimulated discourse surrounding a potential global trade conflict, inflation, and recession fears. In Bangladesh, where the U.S. represents a major market for apparel exports, there is growing concern regarding the implications of these tariffs. Economists provide critical analyses of how such economic policies may impact Bangladesh’s export landscape.
Zahid Hussain, a former World Bank economist, contends that U.S. tariff policies will adversely influence Bangladesh’s exports due to diminished demand driven by a potential economic downturn in the U.S. He notes that increased prices may reduce consumer purchasing power, posing risks to Bangladeshi exports. He advocates for immediate negotiations with the U.S. to challenge the justification for the tariffs and explore potential exemptions.
Moreover, Hussain asserts that the U.S. has justified the 37% tariff on Bangladesh by citing a total tariff of 74% on U.S. exports to Bangladesh, including indirect duties. He urges Bangladesh to negotiate diligently in order to mitigate the tariffs’ negative effects and emphasizes that similar tariffs on competing nations may not offer these countries advantages over Bangladesh.
In agreement, Prof. Mustafizur Rahman of the Centre for Policy Dialogue (CPD) highlighted that the new tariffs may not dramatically alter market competition due to similar obligations on other nations. He predicts that inflation and a subsequent economic slowdown in the U.S. could diminish demand further, thereby harming Bangladeshi exports. He also questions the accuracy of U.S. tariff calculations dated at 74% and calls for engagement and productivity boosts in Bangladesh.
Prof. Selim Raihan of Dhaka University warns that Trump’s tariffs will exacerbate volatility in the global trading environment. He argues that Bangladesh must adapt its domestic trade policies in response to these changes and strengthen its trade partnerships to navigate this challenging climate. He emphasizes the uncertainty surrounding the Most Favoured Nation principle and its ramifications for developing countries like Bangladesh under the new reciprocal tariff system.
The economists’ insights underline the pressing need for Bangladesh to actively engage in negotiations with the U.S. and pursue reforms to bolster its position in a potentially difficult trading landscape.
In summary, the recent U.S. tariffs imposed by President Trump on imports have raised significant concerns for Bangladeshi economists about potential declines in export demand and broader economic implications. The necessity for Bangladesh to engage in negotiations, address tariff justifications, and enhance trade integration becomes paramount in light of these developments. Furthermore, navigating the evolving global trade environment will require proactive measures to safeguard the interests of Bangladeshi exporters as they adapt to this new landscape.
Original Source: www.tbsnews.net
Post Comment