Bangladesh’s export sector is facing its most severe crisis in the past four decades, as escalating counter-tariffs from the United States threaten the industry’s growth and global competitiveness, said prominent industry leaders and economists at a roundtable on Sunday.
The roundtable, titled “US Counter-Tariff: What Path for Bangladesh?” was organised by The Daily Prothom Alo on Sunday. Leading industry figures and economists expressed their concerns about the implications of these tariffs, particularly for the textiles and pharmaceuticals sectors.
“In my 40 years in business, I’ve never seen such a crisis,” said AK Azad, Managing Director of Ha-Meem Group. Reflecting on the struggles facing the sector, he shared a recent conversation with a major brand’s headquarters: “They said, ‘Your position is weak, and good results are unlikely.’” Azad warned that the country could lose over a million jobs if the tariffs remain, particularly in the apparel sector, which is highly vulnerable.
“We are stuck in a muddy situation, and the government seems unaware of how to move forward,” said Debapriya Bhattacharya, Distinguished Fellow at the Centre for Policy Dialogue (CPD). He criticised the government’s handling of the tariff negotiations and urged a more comprehensive approach, one that considers the political, economic, and geopolitical factors involved.
“For the past 10-12 years, we have invested heavily to gain access to the US market. If these tariffs are enforced, all that investment will go to waste,” said Abdul Muktadir, Managing Director of Incepta Pharmaceuticals. He emphasised that the US is the largest pharmaceutical market, and the imposition of a 35% tariff would make it nearly impossible for Bangladesh to sustain its presence there. “The 35% tariff could render the efforts of our industry null and void,” Muktadir added.
“We haven’t received updates on what the government is doing, and business leaders have not been included in the discussions,” said Anwar Ul Alam Chowdhury Parvez, President of the Bangladesh Chamber of Industries (BCI). He criticised the government for excluding the private sector from the ongoing tariff negotiations and stressed the need for involving industry stakeholders in the process: “The government must recognise that businesses are the primary players in these negotiations, not just bureaucrats,” Parvez added.
“We’re working with margins of just 1.2% to 1.5%, and we cannot absorb a 35% tariff,” said Mahmud Hasan Khan, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). He expressed concern about the devastating impact on Bangladesh’s apparel exports and pointed out the competitive disadvantage Bangladesh faces compared to countries like India and Vietnam, which have lower tariffs.
Despite the severity of the situation, the roundtable participants agreed that there is still time to act. “We have ten more days to make a difference,” said Anwar Ul Alam Chowdhury Parvez. “It’s not too late to act, but time is running out,” echoed Abdul Muktadir.
The roundtable concluded with a call for collaboration between the government, private sector, and experts to address the US counter-tariff issue. The speakers emphasised the importance of a unified approach to protect the export sector and ensure the long-term sustainability of Bangladesh’s trade relations with the US. They called for urgent diplomatic action, including the use of lobbying groups, to push for a favourable resolution.
With millions of jobs at stake, the speakers warned that failing to resolve the tariff issue could have disastrous consequences for Bangladesh’s economy. They stressed that immediate, coordinated action is required to safeguard Bangladesh’s position in the global market.