US TARIFFS: LET'S HOPE FOR THE BEST

The United States has slapped a 35% tariff on the goods it imports from Bangladesh. This is on top of the around 15% duty already being charged for Bangladeshi exports, taking the total to a staggering 50%. Unless the ongoing tariff negotiations between Dhaka and Washington produce a positive outcome for Bangladesh, the new tariff rate will go into effect from the first of next month. The two sides have already held two rounds of grueling talks on the subject, but inconclusively. Bangladesh has been pressing for a slash in the tough-to-implement 35% tariff rate, while the US has reportedly tagged the trade and traffic issue with its security concern. The stakeholders in Bangladesh, especially the exporters, have no idea about what has happened in the negotiations and what has so far been achieved. Nothing can be disclosed at this stage because of a confidentiality agreement between the two sides, according to Commerce Adviser Sk Bashir Uddin, the country's lead negotiator with the United States Trade Representative (UNSTR) officials. The next round of talks will be held soon, said the commerce adviser, hoping that there will be good news before the August 1 deadline. Let's keep our fingers crossed until then. That's the message from the businessman adviser of the interim government of Professor Muhammad Yunus.

- By Farid Hossain

Tariff is a tax a government imposes on the goods it imports from another country. This measure is taken to make the imported goods more competitive and protect the domestic producers. It is also a way of boosting the government's revenue. What happens if Bangladeshi goods exported to the US are slapped with 35% plus 16% (total 50%) of tariffs and duties after the expiry of the deadline? The importers are to pay the extra money for the goods. But they will be reluctant to pay it to maintain their profit margin. In order to keep their businesses going, the US importers will slash the purchase orders from Bangladesh and look for markets where they can get the same products at cheaper rates. Bangladeshi exporters will face the music, and some of them fear that the l