With the imposition of higher US tariffs on Indian and Chinese goods, Bangladesh is positioned to significantly boost its exports to the US, potentially increasing earnings by up to $2 billion this fiscal year.
Dr Zahid Hussain, former Chief Economist at the World Bank’s Dhaka office, on Saturday discussed the potential for Bangladesh to seize this opportunity, with expected growth in demand for its ready-made garments, home textiles, processed foods, and frozen seafood sectors.
“In the 2025-26 fiscal year, Bangladesh’s exports to the US market can rise by more than $2 billion if the opportunities are seized,” he said during a lecture organised by the Economic Reporters Forum (ERF).
The recent tariff adjustments have put India and China at a disadvantage, with India facing a 50 percent reciprocal tariff and China a 30 percent tariff. In contrast, Bangladesh’s tariff rate remains at 20 percent, offering a competitive edge to capture a larger share of the US market.
However, experts caution that Bangladesh must address key infrastructural and operational challenges—such as port efficiency, energy reliability, and banking sector obstacles—to fully capitalise on this potential growth.
Mahbubur Rahman, President of the International Chamber of Commerce Bangladesh (ICCB), emphasised the need to strengthen relationships with US buyers and improve port infrastructure, particularly at Chattogram Port, to reduce shipment lead times.
Similarly, Mahmud Hasan Khan, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), underscored the importance of improving transportation infrastructure along the Dhaka-Chattogram Highway.
Meanwhile, Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), pointed to internal challenges, including issues within the banking sector, energy crisis, and customs procedures, as critical factors that need resolution.
Currently, Bangladesh’s trade gap with the US stands at $6 billion, with exports totalling $8.2 billion and imports amounting to $2 billion.
As India’s US exports are expected to decline due to the new tariffs, Bangladesh is in a prime position to capture a larger portion of the market, provided the necessary steps are taken to enhance competitiveness, speakers noted.
Exporters have reported a surge in US orders, while many Chinese companies are relocating to Bangladesh, particularly to special economic zones, to take advantage of the lower US tariff on goods exported from Bangladesh.
ERF President Doulot Akter Mala presided over the session, with General Secretary Abul Kashem moderating the discussion.
