Bangladesh's export sector could face renewed challenges as the United States prepares to impose additional tariffs under Section 301 of its Trade Act, according to the Asian Development Bank (ADB). The multilateral lender warns that the proposed measures could weaken the international competitiveness of Bangladesh's ready-made garments and other export products while creating prolonged uncertainty for trade and economic growth across the Asia-Pacific region.
In its latest report, Asian Development Outlook: July 2026, the ADB states that if the proposed U.S. tariffs are implemented, the effective tariff rate for South Asian economies, including Bangladesh, could increase by an average of 1.2 percentage points. Such a rise would increase export costs and erode the price competitiveness of Bangladeshi products in global markets.
According to the report, the United States is considering imposing an additional tariff of 10 to 12.5 percent on imports from countries that are deemed to have failed to effectively prohibit or enforce restrictions on goods produced through forced labor.
The Office of the United States Trade Representative (USTR) is pursuing the initiative through two separate reviews. First, Bangladesh is among 54 countries identified as having failed to adequately enforce restrictions on the importation of goods produced with forced labor. Second, under Section 301 of the U.S. Trade Act, the USTR is reviewing proposals to impose additional tariffs on imports from 60 countries, including Bangladesh, India, China, Japan, and Vietnam.
The ADB notes that although global trade conditions appeared to stabilize somewhat earlier this year, the USTR's recent investigations and proposed tariff measures have once again heightened uncertainty. The absence of clear guidance regarding the scope, tariff rates, and implementation timeline has increased concerns among exporters and businesses engaged in international trade.
Economists believe the ADB's warning should serve as an important signal for Bangladesh's policymakers. To safeguard the country's export sector and maintain its competitiveness in the U.S. market, Bangladesh will need to strengthen labor rights, improve workplace compliance, and ensure internationally accepted labor standards throughout its supply chains. Experts also emphasize the importance of reinforcing trade diplomacy and diversifying export markets to reduce vulnerability to external trade shocks.