Starting August 1, the United States is set to enforce a new tariff policy that will significantly affect Bangladesh’s export sector. According to a recent report by Fitch Ratings (published July 18), Bangladeshi products may face an Effective Tariff Rate (ETR) of up to 50%—the highest among all U.S. trading partners.
This total tariff includes the existing 15% along with an additional 35% imposed under the new policy. The move poses a serious threat to Bangladesh’s key export sectors, especially readymade garments (RMG).
No Special Tariff Relief for Bangladesh
Fitch’s updated tool, the “U.S. ETR Monitor”, shows that while many countries have received tariff relief on specific products like oil, gas, copper, and pharmaceuticals, Bangladesh has been excluded from such benefits.
As a result, unlike countries like Vietnam or Indonesia, which retain lower or unchanged ETRs through bilateral agreements, Bangladesh must pay the full increased rate.
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Bangladesh Begins Urgent Review of U.S. Conditions
In response to this alarming development, the Bangladesh government has begun reviewing the U.S. conditions tied to the new tariffs. However, officials say that many of these terms are not only commercial but also political and diplomatic in nature, making negotiations more complex.
To address this challenge, the government is working to create a strategic response that may persuade the U.S. to reconsider or reduce the newly imposed tariffs.
Inter-Ministerial Meeting Held to Address Crisis
The Ministry of Commerce held an inter-ministerial meeting yesterday to discuss the issue. According to Fitch’s analysis, this policy change is not only impacting Bangladesh but signals a broader shift in U.S. trade strategy worldwide.
How Other Countries Are Affected
Fitch’s ETR Monitor shows the current and unchanged ETRs for other major U.S. trading partners:
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China: 41.4% (unchanged)
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Canada: 35%
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Mexico: 30%
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European Union: 12–30% (varies by country)
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Vietnam: 20% (unchanged due to new bilateral agreement)
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Indonesia: 19% (unchanged under bilateral agreement)
In contrast, Bangladesh’s ETR will jump from 15% to 50%, making it the worst-hit country under the revised U.S. policy.
What is the ETR Monitor?
The ETR Monitor is an interactive tool developed by Fitch Ratings that analyses the tariff burden on imported goods across countries and sectors. It is regularly updated and helps forecast possible shifts in tariff policies.
Source: Bangladesh Times
