Bangladesh Awaits US Guidance After Court Blocks Trump Tariffs

The Bangladesh government is awaiting official guidance from the United States following a U.S. court ruling that struck down the Trump administration’s countervailing tariff structure as illegal. The decision coincides with U.S. President Donald Trump’s announcement of a new 15 percent tariff, creating uncertainty over Bangladesh-U.S. trade arrangements.

Commerce Secretary Md. Mahbubur Rahman said that while the court ruling allows the U.S. to impose a 15 percent tariff on all trading partners, Bangladesh has yet to receive formal notification. The 20 percent tariff imposed last August remains in effect, and the proposed 19 percent tariff under the previous agreement has not been implemented. The government expects clarification from Washington soon and continues discussions with U.S. authorities to determine the next steps.

Experts see potential opportunities arising from the court ruling. Sovan Islam, Managing Director of Sparrow Group, suggested that Bangladesh could renegotiate with the U.S. to secure a more favorable tariff and strengthen export competitiveness.

Meanwhile, Fazle Shamim Ehsan, Executive President of the Bangladesh Knitwear Manufacturers and Exporters Association, criticized the interim government’s last-minute tariff agreement signed shortly before national elections, calling it a source of uncertainty and alleging potential personal gain by some officials. He urged the new government to explore ways to cancel or reconsider the agreement and stressed that trade deals should ideally be based on HS codes to ensure clear tariff and customs benefits.

Professor Mostafizur Rahman, Honorary Fellow at the Center for Policy Dialogue, said that if a flat 15 percent tariff applies to all countries, Bangladesh would neither gain nor lose special benefits. He noted that the previous agreement aimed to reduce tariffs from 37 percent to 19 percent, and its effectiveness is now in question. He argued that since the agreement has not yet taken effect, fresh negotiations should have been initiated rather than rushing the deal before elections. He also highlighted the standard 60-day period between an agreement’s effective date and the exchange of notes, which Bangladesh can use strategically.

Abdur Razzak, chairman of Research and Policy Integration for Development, emphasized that all such agreements require parliamentary approval. He noted that the U.S. Congress could challenge countervailing duty provisions and warned that missteps could trigger pressure from Washington. The Supreme Court ruling clarified that the U.S. president does not have unilateral power to impose tariffs, although existing tariffs can remain in effect for up to 150 days.

The combination of the court ruling, pending official communication, and the potential 15 percent tariff has created both uncertainty and opportunity for Bangladesh’s trade policy, leaving the government with strategic decisions in the coming weeks.