Nothing to worry of about US counter-tariffs: Debapriya Bhattacharya

There is no reason to panic over the imposition of counter-tariffs by the United States, said Dr Debapriya Bhattacharya, distinguished fellow at the Centre for Policy Dialogue (CPD).

There is no reason to panic over the imposition of counter-tariffs by the United States, said Dr Debapriya Bhattacharya, distinguished fellow at the Centre for Policy Dialogue (CPD).

He said: “In trade economics, there are no permanent enemies. The US and China have already begun reaching an understanding. So, the level of concern being expressed over potential tariffs on Bangladesh may not have such a severe impact in reality.”

He made these remarks on Saturday while presenting the keynote paper at a seminar titled “US Reciprocal Tariffs and Bangladesh’s Action Plan,” organized by the Dhaka Chamber of Commerce and Industry (DCCI).

Dr Debapriya said: “If the US imposes tariffs on us, it will also hurt their own interests by increasing import costs. Tariff pressure affects both sides. Therefore, instead of panicking, we must take realistic preparations.”

Calling for clarity regarding Bangladesh’s graduation from LDC status, he added: “We still have two years in hand. During this time, we must focus on diversifying our products and developing the service sector. These challenges cannot be addressed through trade policy alone — a comprehensive strategy is essential.”

He further said: “The government’s initial response to the US tariff issue was appropriate. Now, it is time to accelerate sector-specific reforms. The private sector also needs to play a more active role in this.”

Mahbubur Rahman, president of the International Chamber of Commerce Bangladesh (ICCB), said at the seminar, “Our negotiation capacity is still weak. We must enhance this skill to survive in global competition.”

Dr Masrur Reaz, chairman of Policy Exchange Bangladesh, said: “When two elephants fight, the grass gets trampled — and even when they play, the grass still gets crushed. In the conflict between the US and China, we must be extremely cautious and strategic.”

In his speech as chief guest, Commerce Secretary Mahbubur Rahman said: “The government is taking necessary steps to deal with the US tariff situation. As part of this, various initiatives including the construction of warehouses for cotton are being undertaken.”

Rajib Haider, director of the Bangladesh Textile Mills Association (BTMA), said: “Due to the gas crisis, our production has dropped by 40%. Gas meters are falling daily. In such conditions, survival has become extremely difficult. Instead of discussions on what to do, immediate policy-level steps are needed to solve the gas issue.”

The seminar was attended by representatives from various business organizations, policymakers, and research institutions. Speakers stressed the need for a coordinated strategy and long-term preparation to address the US tariff situation.