What economic experts are predicting about it in Bangladeshi?

Businessmen have expressed concern over the future of US President Donald Trump's 37 percent tariff on Bangladeshi exports, even though a decision has not yet been made.

Besides, the experts said that an understanding must be reached with the US administration is needed as soon as possible to overcome this situation. At the same time, alternative markets for ready-made garments and other export products must be found.

Experts and business leaders opined that Trump's tariffs will increase inflation in the United States, reducing the purchasing power of the country's citizens. This will reduce garment exports.

It will take time to overcome this crisis by exporting ready-made garments to new markets, according to the experts.

Economists in the country said that the United States has increased tariffs not only on Bangladeshi products but also on products from various countries around the world. There is a risk of inflation in the country due to the imposition of high tariffs. As inflation rises and consumer purchasing power declines, there is also a risk that the US economy will fall into a recession. As the United States is the top destination for ready-made garment exports, exports will decrease ultimately. It will have a negative impact on overall export earnings.

However, if the government can reduce tariffs through negotiations with the US administration, the fear of a decline in export earnings would be fairly alleviated, experts opined.

Former director of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Md. Mohiuddin Rubel said, “The United States has imposed or increased additional tariffs on products from around 60 countries. It will have an impact on those countries. The purchasing power of US citizens will decrease, inflation will increase, which will not be good for the country. Businessmen are worried about this.”

If the Bangladesh government works on this, tariffs could be reduced, he added.

BKMEA Executive President Fazlee Shamim Ehsan opined that tariff wars are not desirable in the modern world. These tariffs will not bring much success to the American economy. The profit margin on our exported products is very low. The United States thinks these products will be made in the USA. That is not possible. As these industries are labor-intensive based industries.”

Initially we will face a storm for this tariff. Because buyers are always opportunists. Buyers will try to reduce the price of our products, he added.

Zahid Hossain, former chief economist at the World Bank's Dhaka office, said there is no doubt that the new US tariff policy will have a negative impact on Bangladesh's exports.

In addition to its impact on Bangladesh, Trump's tariff war will also affect the US economy, he said.