Bangladesh must act swiftly and strategically to capitalise on the 90-day US tariff respite, or risk losing a significant volume of seasonal work orders for the upcoming holiday period.

The country must also communicate with the United States regarding the measures it intends to implement to address concerns, including reducing high import tariffs, boosting imports—particularly US cotton—and enhancing the supply chain through the establishment of bonded warehouses and stronger intellectual property protection.

These remarks were made during a dialogue titled ‘US Tariffs—Impact and Way Forward,’ organised by the American Chamber of Commerce in Bangladesh (AmCham).

The event aimed to discuss concerns and propose solutions in response to the recently imposed US tariffs.

Businesses and exporters also advocated for the inclusion of the private sector in the negotiation process.

Leathergoods and Footwear Manufacturers & Exporters Association of Bangladesh (LFMEAB) president Syed Nasim Manzur expressed concern over the new US tariffs regime.

‘We should not become complacent of 90 days tariff pause. Bangladesh has to inform the US fast what it is going to do,’ he said.

He said that when the 90-day tariff hold comes to an end, the season for Christmas holiday work orders—the most significant of the year—would begin.

He explained that if there was no clarity on product pricing at that time, work orders for Christmas and the holiday season would not be confirmed.

Nasim Manzur, also the managing director of Apex Footwear Limited, warned that they would miss the season and lose the cycle, adding that they could not afford to rest even for a day.

He cautioned that without the holiday season work orders, their survival would be at risk.

He said that some small and medium-sized factories already have shipments on hold at the ports, and if the proceeds do not come in, their ability to manage cash flow and pay workers’ wages would be severely affected.

This, he warned, could lead to fresh labour unrest in industrial zones such as Ashulia and Gazipur.

A plan is needed to offset a possible 37 per cent tariff, as competitors are already preparing, he said proposing a weekly progress tracker, led by senior government and supported by the private sector, to monitor key importable and seize this short-term opportunity.

John Fay, Commercial Counselor of the US Embassy in Dhaka, said that US companies faced not only high import duties but also very high supplementary duties in many cases, particularly for IT and cold chain products.

Describing the 90-day period as insufficient, he stressed the need for specific measures and called for the involvement of the private sector as well.

Highlighting the US as Bangladesh’s top export market and key investor, AmCham President Syed Ershad Ahmed said the country is contributing capital, technology transfer, and expertise in sectors like insurance, hospitality, and technology.

He acknowledged over 50 years of US-Bangladesh ties and called for reciprocal tariff adjustments and a bilateral agreement to address trade barriers.

Mohammad Belal Hossain Chowdhury, Member (VAT Implementation & IT) of the National Board of Revenue, announced that draft legislation for the Central Bonded Warehouse is in progress, aiming to resolve long-standing issues with a solution-focused approach.

He proposed using US-funded projects and global import routes to turn import reliance into export potential.

Participants expressed strong support for strategically leveraging the 90-day US tariff respite, voicing concerns over the severe impact of the 10 per cent baseline tariff on profit margins and the confidence of US buyers.

Given the looming possibility of tariffs reverting to 37 per cent, they also called for urgent and proactive measures to mitigate potential losses.

Participants said the next three months were seen as crucial for Bangladesh to gain market share amid rising US tariffs on Chinese goods.

They noted that Bangladesh’s compliant RMG factories were well-positioned to take advantage of this opportunity, but emphasised that government support was essential—particularly in streamlining customs procedures and addressing raw material shortages and pricing pressures.

They also highlighted the need to remove non-tariff barriers, such as unnecessary radioactivity tests, which continued to delay imports despite the presence of global certifications for those products.

These barriers, alongside high import duties and rigid systems, are discouraging foreign investment, and policy support is needed to sustain trade and investment, they noted.

Participants stressed the urgent need to improve logistics efficiency—particularly at Chittagong Port—to enhance Bangladesh’s export competitiveness.

Key recommendations included streamlining customs procedures, activating bonded warehouses, and easing raw material imports, especially cotton from China.

A three-part strategy was proposed: identifying export strengths, reducing logistics and port inefficiencies to cut costs, and analysing the impact of tariffs and trade barriers on U.S. landed costs compared to competitors.

Concerns were raised over the limited scale-up of key imports such as soybeans, LNG, and scrap metal despite low or zero tariffs, with non-tariff barriers like unnecessary testing cited as obstacles.

The dialogue also highlighted high tax rates on hardware (15.5 per cent) and software (up to 56 per cent), which were seen as barriers to digital growth, along with delays in HS code updates and inconsistent tax exemptions for IT Park investors.