Bangladesh may face more tariffs from USTR: ADB

Bangladesh could face renewed pressure on its export sector as the United States prepares a fresh round of tariffs under Section 301 of the Trade Act, a move that would not only raise the country’s trade costs but also deepen uncertainty across developing Asia, the Asian Development Bank (ADB) has warned.

If the proposed Section 301 measures are implemented, the effective US tariff rate on developing Asia and the Pacific would rise from 24.8 percent to 25.9 percent, according to ADB’s scenario analysis in its Asian Development Outlook (ADO) July 2026, published yesterday.

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South Asia, which includes Bangladesh, would experience a 1.2 percentage-point increase, while developing East Asia, led by China, would see tariffs rise by 1.3 percentage points, it added.

One of the Section 301 investigations has already led to proposed tariffs on 60 economies. On June 2, 2026, the USTR issued a determination proposing additional tariffs on Bangladesh, Cambodia, Indonesia, Malaysia, Pakistan, and Taipei, China.

“Taken together, these developments suggest that trade policy uncertainty may remain elevated despite some recent easing.”

“The trade policy uncertainty index has declined since the US Supreme Court’s ruling in February 2026, but the easing may prove temporary. The outcomes of USTR investigations will determine which economies are affected and at what rates, but the scope, scale, and timing of further measures remain uncertain,” it added.

During its June investigation, the USTR identified 54 economies, including Bangladesh, India, China, Japan, the United Kingdom, Vietnam, and Thailand, as failing to impose and effectively enforce bans on the importation of goods produced with forced labour.

Another six economies, including Canada, Mexico, and Pakistan, were cited for failing to effectively enforce existing prohibitions.

Under the proposed framework, countries with partial forced labour import bans or reciprocal trade arrangements with the US would face an additional 10 percent tariff.

Countries without such arrangements could face a higher 12.5 percent duty on exports to the United States, according to the proposal.