Trump imposes 37% reciprocal tariff on Bangladesh

The US administration has hiked the reciprocal tariffs on Bangladeshi products in the United States from 15 percent to 37 percent with immediate effect. 

US President Donald Trump announced the new tariffs at a press conference at the White House on Wednesday at 4 pm local time in Washington (2 am Bangladesh time on Wednesday).

Calling the day 'Economic Freedom Day' in the United States, Trump referred to this new tariff as the economic freedom of the United States.

He said that the United States has been waiting for this day for a long time. Meanwhile, many countries are calling the imposition of the new tariffs on products from different countries a 'trade war'.

Economists fear that this tariff will have a major negative impact on Bangladesh's exports, especially the ready-made garment sector. Because a large part of Bangladesh's main export product, ready-made garments, is exported to the United States.

The country exports about 8.4 billion (840 crore) dollars annually, which is mainly ready-made garments. Last year, the amount of ready-made garment exports to the United States was 7.34 billion (734 crore) dollars.

According to the new announcement, a 26 percent tariff has been imposed on Indian products, 29 percent tariff has been imposed on Pakistani products while 34 percent tariff has been imposed on Chinese products.

In addition, 20 percent has been imposed on European Union products, 46 percent on Vietnamese products, 44 percent on Sri Lankan products, 32 percent on Taiwanese products, 24 percent on Japanese products, 25 percent on South Korean products, 36 percent on Thai products, 31 percent on Swiss products, 32 percent on Indonesian products, 24 percent on Malaysian products, 49 percent on Cambodian products, 10 percent on UK products, 30 percent on South African products, 10 percent on Brazilian products, 10 percent on Singaporean products, 17 percent on Israeli products, 17 percent on Philippine products, 10 percent on Chilean products, 10 percent on Australian products, 10 percent on Turkish products, and 10 percent on Colombian products.

Meanwhile, 44 percent on Myanmar products, 48 ​​percent tariff on Laos products, and 47 percent on Madagascar products have been imposed.

Meanwhile, Trump has announced a 25 percent tariff on all foreign car imports into the United States.

Citing the fact that US company Ford sells very few cars in other countries, Trump said that a 25 percent tariff will be imposed on motor vehicles made in any other country and it will be effective from midnight tonight.