Sri Lanka
Bangladesh’s victory and defeat in US tariff war
After three rounds of discussion, Bangladesh has managed to reduce the increased tariff imposed on its products in the US market from 35 percent to 20 percent. This is not only positive for the country's economy but also a diplomatic success for the interim government. Because when on April 2, US President Donald Trump first announced the rate of additional tariffs on various countries, he stated that a 37 percent additional tariff would be levied on Bangladeshi products. Later, that tariff was suspended temporarily for three months. Trump informed Dr Yunus in a letter that instead of 37, the tariff amount on Bangladesh would be 35 percent, after reducing it by 2 percent.
Reciprocal Tariff by USA - its Impact on Bangladesh Economy
The announcement of Reciprocal Tariff (RT) on April 2, 2025 on 108 countries ranging from 11-49% by the president Donald Trump has shaken the world irrespective of size of the economy and the amount of trade deficit USA is running with the concerned countries. The trade deficit of US was USD 918.4 billion in 2024, total US exports with the rest of the world is USD 3.12 trillion and total imports were USD 4.11 trillion as per the available information. US constantly enjoying surplus in services export, which was USD 1.15 trillion, and import was 0.841 trillion in 2024. USA did not mention services export issues anywhere whereas services export throughout the world is growing and will dominate the future trade.
What Bangladesh should do regarding US tariff
If any country imposes additional tariffs on imported goods, the first reaction is that the price of the concerned exported goods increases. The United States has imposed increased tariffs on imported goods from various countries. In order for Bangladeshi products to enter the US market in the future, an additional 35 percent tariff will have to be paid. Currently, an average of 15 percent tariff has to be paid for exporting Bangladeshi products to the US market. An additional 35 percent tariff will be added to that. That is, in order to enter the US market in the future, a total of 50 percent tariff will have to be paid on Bangladeshi products.
Discrimination-reducing budget expected from interim govt
In the face of a challenging global economy, creating a budget in a densely populated country like ours is a difficult task. It cannot be confined within the conventional rules of economics. Among the sectors essential for the social, economic, moral, and intellectual development of a nation, education is one of the most important.
Agriculture sector needs to be prioritised in upcoming budget
The new budget is knocking at the door. The budget for the 2025–26 fiscal year may be presented on June 2. The preaparing the budget is currently underway. It has already been reported that the size of the upcoming budget may be Tk 7.9 trillion. Compared to this year’s original budget, it will be Tk 70 billion less. For the first time since independence, the budget size is decreasing in monetary terms. Undoubtedly, this will be a contractionary budget. Due to ongoing high inflation, slow revenue collection, and lack of capacity in budget implementation, a tight budget is indeed desirable for us.
Ensure the workers' right to survival
Today is May 1, the International Workers’ Day, globally known as May Day. On this day in 1886, workers in Chicago, USA, sacrificed their lives demanding dignity of labour, fair wages, and an eight-hour workday. In honour of their sacrifice, countries across the world, including Bangladesh, observe this day as a symbol of the fight for workers’ rights. Every year, Bangladesh observes the day with due respect, declaring it a public holiday. The media runs special reports, and various events are held to discuss workers' issues. But what is the actual condition of workers in Bangladesh?
Before signing an agreement with China, its preconditions must be verified
The Chief Adviser of the Interim Government, Dr. Mohammad Yunus, is scheduled to visit China on a four-day state visit on March 26. This will be Dr. Mohammad Yunus' first bilateral state visit to China since taking over the responsibility of state administration. While there are various reasons why Dr. Yunus' visit to China is significant, the most important aspect is strengthening bilateral economic relations. The visit is also politically significant, but it is expected that economic issues will take precedence. China's economic influence worldwide cannot be denied. At present, China is one of the largest financial aid providers globally. China has been generously providing financial assistance to various countries, including Sri Lanka and Bangladesh.
Deficits and tariffs: Trump confusions and what can be done about them
The US has a persistent trade deficit with Sri Lanka. Despite almost universal agreement among economists that trade deficits, especially between two countries, are not meaningful, President Trump believes otherwise. As he assumed office, he asked his officials to “investigate and remedy” persistent US trade deficits. Sri Lanka-US trade shows a deficit of USD 2.6 billion following an increase of 6.3 percent in 2024. Sri Lanka was responsible for 0.28 percent of the total US trade deficit. Even if it were eliminated, there would be no discernible impact on the total.
A fruitful outcome expected in Champions Trophy
International cricket tournaments hold a distinct charm and attraction in the subcontinent. Every international cricket event turns into an unplanned festival, where millions of people immerse themselves in the celebration. This joyful festivity influences individuals, families, and society, even altering the daily rhythm of life. Cricket, often called the "king of uncertainty," captivates fans because of its deep resemblance to life itself. Just as life's unpredictability makes it beautiful, so does cricket.
Contractionary monetary policy alone can’t solve inflation woes
The Bangladesh Bank announced the second monetary policy of the current fiscal year on February 10, 2025. This was the second monetary policy for the fiscal year 2024-25 and the first policy under the interim government. There was considerable anticipation regarding the announced policy, and many experts had expected it to be contractionary in nature. Indeed, the policy can be described as contractionary in terms of its characteristics, as it focuses more on controlling the existing high inflation rather than achieving high growth.