Bangladesh's Yunus writes to Trump, requests three-month suspension of counter-tariffs

IANS April 7, 2025 283 views

Bangladesh is experiencing a critical economic downturn with significant challenges in its export sector, particularly Ready-Made Garments. Muhammad Yunus has directly appealed to US President Donald Trump to suspend retaliatory tariffs for three months to provide economic relief. The country is struggling with political instability, liquidity crunch, and widespread industrial disruptions. These complex issues are threatening Bangladesh's international trade and economic sustainability.

"World leaders are dying to make a deal" - Donald Trump
Bangladesh's Yunus writes to Trump, requests three-month suspension of counter-tariffs
Dhaka, April 7: Muhammad Yunus, Chief Advisor of the interim government in Bangladesh, has written a letter to US President Donald Trump on Monday, requesting him to postpone the application of reciprocal tariff measures on the country's exports to the United States for three months.

Key Points

1

Yunus writes to Trump seeking tariff relief for Bangladesh exports

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US imposed 37% tariff on Bangladeshi goods

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Bangladesh facing severe economic and political challenges

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Garment sector particularly impacted by trade tensions

US President Donald Trump has slapped a 37 per cent tariff on Bangladeshi goods from the existing 15 per cent on average. A large portion of Bangladesh's main export product, Ready-Made Garments (RMG), is exported to the US. Bangladesh's annual exports to the United States are worth about $8.4 billion, mainly RMG.

The average tariff on American products is 74 per cent. The Trump administration applied a 50 per cent discount on this rate and imposed a tariff of 37 per cent for Bangladesh, local media reported.

As global stock markets plunged Monday, Trump defended his controversial tariff policies, dismissing concerns over the economic impact. He said that the world leaders are "dying to make a deal" to negotiate the reciprocal tariffs.

Meanwhile, the economy of Bangladesh is already on a declining trend since the interim government came to power in August 2024.

The business sector in the country has been facing a huge liquidity crunch with numerous commercial and industrial establishments shutting down. The political turmoil in Bangladesh has also hugely impacted international trade and prompted global retailers to look for alternative partners. The entrepreneurs in Bangladesh are facing difficulties in importing raw materials to sustain their business.

Further, protests and strikes by workers of garment factories over non-payment of dues and deteriorating working conditions have gripped the entire country. Several reports have revealed that the continuous protests by the workers have led to the closure of many factories while many workers have also lost their lives or got seriously injured during protest marches.

A report in the country's leading Bengali daily Prothom Alo cited that most economic indicators, including revenue collection, inflation, unemployment, private investments, capital equipment import, capital market, and foreign investment, are not showing any good signs.

Dhaka-based Centre for Policy Dialogue (CPD) has maintained that the country cannot attract domestic and foreign investments unless there is political and institutional stability.

Reader Comments

S
Sarah K.
This is a smart move by Yunus. The garment industry employs millions in Bangladesh - a 3-month buffer could help stabilize things during this crisis. Hope Trump considers it 🤞
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Amit R.
While I support Bangladesh's request, the government needs to address the workers' rights issues too. You can't just ask for tariff relief while factory conditions remain terrible.
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Maria L.
The timing couldn't be worse with the global economic slowdown. Those tariffs will hit Bangladesh hard when they're already struggling with political instability. 😟
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Jamal T.
Interesting to see how Trump responds. He's been tough on trade deals but might make an exception given the humanitarian aspect here. The garment workers' protests show how desperate things are.
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Rina P.
The 74% tariff on US goods seems excessive to begin with. Maybe Bangladesh should consider more balanced trade policies rather than just asking for extensions?
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Tariq H.
My cousin works in a Dhaka garment factory. The situation is worse than reported - no pay for months, unsafe conditions. Tariffs are important but workers' lives matter more! #StandWithWorkers

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Tags:
Muhammad Yunus Donald Trump Bangladesh Exports US Tariffs Ready-Made Garments Economic Crisis
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