Dhaka: The International Chamber of Commerce (ICC) has urged governments to prioritise dialogue to address the recent tariff measures announced by the United States, which have sent ripples through the global trading system. 'We continue to encourage governments to place an emphasis on negotiation and de-escalation to the greatest extent possible - tariff retaliation is a lose-lose game,' stated ICC Bangladesh President Mahbubur Rahman during a press briefing at a city hotel, where he presented a statement by ICC Secretary General John W.H. Denton AO.
According to Bangladesh Sangbad Sangstha, the ICC's statement, representing over 45 million companies from more than 170 countries, highlights the unprecedented nature of these tariffs in American trade policy. John W.H. Denton AO emphasized that the current effective U.S. tariff rates are comparable to those from the 1930s and now encompass a larger portion of the American GDP than the Smoot-Hawley Act. He stressed that while this development poses significant risks to the global economy, it does not necessarily herald a systemic crisis. The reaction of other nations to these tariffs will play a crucial role in determining the economic impact.
The ICC has expressed immediate concerns about the severe tariffs targeting emerging economies, which could further harm countries already grappling with challenging trade conditions. Businesses within the ICC network are seeking urgent clarification from U.S. authorities on the practical application of these new tariffs, especially in terms of their interaction with sector-specific duties and rules of origin requirements. With the swift implementation of these measures, there is a looming risk of supply chain disruptions and customs backlogs unless clear guidelines are provided promptly.
From a broader perspective, Denton described the measures as a fundamental challenge to the rules-based governance of trade. He called for bilateral responses to the U.S. administration, urging governments to act in defense of the multilateral system and lay the groundwork for its revival. He underscored the importance of predictability and certainty for international commerce, expressing skepticism that a tariff escalation of this magnitude could achieve a level playing field. Ultimately, he argued, multilateral solutions are necessary to address longstanding inefficiencies in the global trading system.
Following the ICC statement, Mahbubur Rahman voiced serious concerns about the recent announcement by U.S. President Donald Trump, which includes a universal 10% tariff on all imports to the U.S., along with additional tariffs under a "reciprocal" trade framework. For Bangladesh, this means exports to the United States will now face a 37% tariff, a significant increase from the current average rate of 15%.