US customs officials began enforcing the new 10 per cent import tariff unilaterally imposed by President Donald Trump starting Saturday (April 5).
This baseline or minimum tariff became effective at 12:01am local time across US seaports, airports, and bonded warehouses.
The announcement of this sweeping trade policy, made in the Rose Garden of the White House last Wednesday (April 2), sent shockwaves through global markets. Within just two days, the S&P 500 alone lost $5 trillion in market value as investors scrambled for safer assets like government bonds.
Energy and commodity prices plummeted amid fears of an escalating trade war.
Phase I: The 10% tariff rollout
The initial phase of Trump’s tariff policy targets several countries, including Australia, the United Kingdom, Colombia, Argentina, Egypt, and Saudi Arabia. However, goods already en route to the US by plane or ship before 12:01am on Saturday have been granted a 51-day grace period. These shipments must arrive by May 27 to avoid the new tariffs.
For Bangladesh, the stakes are high. Under Trump’s policy, Bangladeshi exports to the US will face a 37 per cent tariff—a significant blow to one of the country’s key export markets.
In response, Bangladeshi authorities are reportedly considering reducing import tariffs on US goods in hopes of mitigating the impact.
Phase II: Higher tariffs loom
The second phase of Trump’s tariff plan, set to begin next Wednesday (April 9), promises even steeper rates. European Union goods will face a 20 per cent tariff, while Chinese goods will be hit with a staggering 34 per cent levy—bringing the total tariff on Chinese products to 54 per cent.
Vietnam, another major exporter to the US, will see its goods taxed at 46 per cent. However, Vietnam has reportedly agreed to negotiate a deal with the Trump administration following last Friday’s discussions.
Bangladesh’s 37 per cent tariff places it among the hardest-hit nations, raising concerns about the long-term competitiveness of its exports in the US market. With limited time to adapt, Bangladesh faces mounting pressure to recalibrate its trade strategy.
Who got exemptions?
Not all countries or sectors are subject to the new tariffs. Canada and Mexico remain exempt due to their existing 25 per cent tariff under the US-Mexico-Canada Agreement (USMCA), which was imposed in response to the "fentanyl crisis."
Additionally, national security-related items such as steel, aluminium, cars, and vehicle parts are not affected by the new tariffs.
The US administration has also announced exemptions for over 1,000 imported products valued at $645 billion collectively for 2024. These include critical commodities like crude oil, fuel, pharmaceuticals, uranium, titanium, lumber, semiconductors, and copper. However, future tariffs may still be imposed on sectors outside energy under the guise of national security.
Bangladesh’s challenge: A race against time
With the 10 per cent baseline tariff now in effect and higher rates looming, Bangladesh must act swiftly to navigate these turbulent trade waters. The 37 per cent tariff on Bangladeshi goods could severely impact key industries, particularly textiles and apparel, which account for a significant portion of the country’s exports to the US.
Experts suggest that Bangladesh could explore several measures to cushion the blow. These include negotiating bilateral agreements with the US, diversifying export markets, and enhancing domestic production capabilities to reduce reliance on any single market.
Reducing import tariffs on US goods, as authorities are reportedly considering, may also help ease tensions and foster goodwill.
However, the clock is ticking. The 51-day grace period offers a brief window for exporters to adjust their strategies, but the long-term implications of Trump’s tariff policy could reshape global trade dynamics for years to come.
A global economy in flux
Trump’s aggressive trade stance has reignited debates about protectionism versus free trade. While his administration argues that the tariffs aim to protect American industries and workers, critics warn of potential retaliation from trading partners and disruptions to global supply chains.
For Bangladesh, the challenge lies in balancing immediate economic pressures with strategic long-term planning.
As the world watches how nations respond to Trump’s tariffs, one question looms large: Can Bangladesh adapt quickly enough to safeguard its economy and maintain its foothold in the highly competitive US market?