Dhaka: The imposition of 50 percent US tariffs on Indian exports is expected to shift export orders to Bangladesh, potentially boosting the country's exports by billions, say experts, including economists and business leaders.
According to Bangladesh Sangbad Sangstha, the US administration imposed a 25 percent duty on Indian goods as a penalty for purchasing crude oil from Russia. This raises the total reciprocal duty on Indian goods entering the US market to 50 percent. In contrast, Bangladesh faces a 20 percent tariff on its exports to the US, positioning it advantageously in light of the higher tariffs on Indian products.
Economists and industry leaders highlight that Indian exporters will lose competitiveness in several categories, including ready-made garments, home textiles, processed agricultural foods, leather goods, frozen fish and shrimp, and furniture-fields where Bangladesh already has a strong export presence. Consequently, Bangladeshi exporters may receive US orders that shift away from India.
Dr. Zahid Hussain, former Lead Economist of the World Bank's Dhaka office, noted that the imposition of a 50 percent tariff on Indian goods in the US market would heavily impact Indian exportable items like RMG, footwear, and others. He emphasized that the diversification of exports to other countries, such as Bangladesh, Vietnam, China, and Myanmar, is likely, with Bangladesh being at the forefront.
Bangladesh could potentially boost its exports to the USA by another $2 billion to $3 billion if stakeholders capitalize on these opportunities, Dr. Zahid suggested. He stressed the importance of enhancing the capacity of stakeholders and ensuring an uninterrupted supply of energy, as well as improving port efficiencies and addressing issues at the National Board of Revenue.
Mahmud Hasan Khan, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), echoed these sentiments, stating that opportunities for Bangladesh are apparent, but local exporters must capitalize on them. He called for urgent government measures to enhance efficiency at Chattogram Port and reduce lead times.
Meanwhile, Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), highlighted the need for addressing issues within the banking sector, resolving power and energy crises, and maintaining law and order to take full advantage of the situation.
Currently, the trade gap between Bangladesh and the USA is $6 billion, with Bangladesh exporting goods worth $8.2 billion and importing goods worth $2 billion from the US. India, which counts the US as its single largest export partner, exported nearly 20%, or $86.51 billion worth of goods, to the US in the year ended March 2025.