U.S. President Donald Trump’s decision to suspend reciprocal tariffs for three months has brought some relief to Bangladeshi exporters to the American market. Previously suspended purchase orders are starting to return. However, the continued imposition of a minimum 10% reciprocal tariff has left a sense of uncertainty.

While Trump has temporarily suspended reciprocal tariffs on many countries, he raised tariffs on nearly all Chinese goods to 145%. Though he had earlier announced a 125% tariff on Chinese imports, the White House confirmed on Thursday that it would be 145%, effective immediately. Bangladeshi exporters believe that if these tariffs remain in place, U.S. buyers may move business away from China — creating opportunities for Bangladesh.

On Wednesday, President Trump announced a 90-day suspension of reciprocal tariffs on products from Bangladesh and several other countries. Posting on his social media platform Truth Social, he said over 75 countries had reached out to U.S. trade representatives, including officials from the Department of Commerce, the Treasury, and USTR, seeking dialogue to resolve issues related to trade, tariffs, currency manipulation, and non-tariff barriers.

Bangladeshi exporters say the temporary suspension is a relief and provides an opportunity for negotiation. They urge the Bangladeshi government to engage with the Trump administration at the highest level. Still, the lingering 10% tariff creates concern. U.S. buyers may reduce or delay orders until a final decision is reached. If competitor countries succeed in negotiating lower tariffs, they might win over business from Bangladesh.

To reduce the U.S. trade deficit, Trump announced on April 2 a minimum 10% reciprocal tariff on imports from several countries, and increased tariffs on 57 others, sparking a trade war. China retaliated with tariffs on U.S. goods, and the EU also voted to impose counter-tariffs. However, Wednesday’s announcement brought relief to global markets and helped Asian stock exchanges recover.

According to the U.S. International Trade Commission, in 2024, the U.S. imported $8.45 billion worth of goods from Bangladesh and collected $1.27 billion in tariffs, averaging about 15%. For garments alone, the U.S. imported $7.13 billion from Bangladesh and collected $1.2 billion in tariffs, making the average tariff on apparel 16.77%.

The Trump administration had previously imposed an additional 37% tariff on Bangladeshi goods through an executive order issued on April 7, which stated this would be added to the existing tariff rate. Though the new tariff has been suspended, the 10% minimum tariff remains in effect, pushing the average tariff on Bangladeshi goods to 25% over the next three months.

Interim government chief advisor Professor Muhammad Yunus thanked Trump for suspending the tariffs. Yunus had written to the U.S. President earlier in the week requesting a three-month suspension. On the same day, Bangladesh’s trade advisor Sheikh Bashiruddin also wrote to USTR Jamison Greer, noting that 190 Bangladeshi products already have zero tariffs in the U.S., and discussions are underway to add 100 more.

Former BGMEA president Rubana Huq told Prothom Alo that countries like Vietnam, Cambodia, and India are far ahead of Bangladesh in negotiating with the Trump administration. "We need to go even further," she said, expressing hope that a high-level Bangladeshi delegation would soon visit the U.S. for negotiations. She added that the minimum 10% tariff could still impact new order flows.

Suspended Orders Returning

After the initial tariff imposition, Bangladeshi exporters of garments, leather goods, and other products began receiving suspension notices from U.S. buyers. Some buyers asked for shipment delays, while others demanded discounts. But with the suspension of tariffs, the situation is improving.

Several garment exporters reported that U.S. buyers have started instructing them to resume production on previously suspended orders. However, some buyers are demanding a 5% discount — effectively half of the 10% tariff — on total order value.

Sparrow Group of Industries, a leading garment exporter, had several orders suspended. As of Thursday evening, 20–30% of those orders had resumed. Managing Director Shovon Islam told People's time, “We were holding our breath. Now we can breathe again. But we cannot sit back. The government must urgently engage with the Trump administration to reduce the trade gap.”

Shift in Orders from China

China has long been the top apparel exporter to the U.S., currently holding a 21% share. But Trump’s new tariff policy imposes a 145% duty on Chinese goods, while China has responded with 84% tariffs on U.S. products.

According to BGMEA, a $2 cotton T-shirt imported from China would now face a $2.83 tariff, while the same item from Vietnam or Bangladesh would incur only $0.53 in duties.

Former BKMEA president Fazlul Haque told People's time that U.S.-China tensions are unlikely to ease soon. High tariffs will force buyers to shift orders and even relocate factories. Bangladesh must act decisively to capture this shifting business. He emphasized the need for policy support to ensure exporters are not harmed by the remaining 10% tariff.

Dr. Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue (CPD), said Bangladesh must engage in structured negotiations within its internal policy framework to seek relief. He warned that granting unilateral duty-free access to U.S. goods might negatively affect trade talks with other countries. A bilateral agreement covering trade, investment, and government procurement with the U.S. would be the best approach, he said.