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However, Khan, also chairman of Edge Asset Management Ltd, added that the tariff hike may have an indirect impact on the stock market. For instance, if the government now tries to reduce tariffs on products imported from the US, it will reduce revenue earnings, he said.

“This may prompt the government to raise taxes on other sectors or borrow from the banking sector. Borrowing from banks will create extra pressure on the liquidity of the financial sector,” he said. If there is a liquidity shortage and the interest rate of bonds rises further, it will impact the stock market, he explained.

Saiful Islam, president of the DSE Brokers Association of Bangladesh, said the immediate impact of the tariff hike on the stock market was low as there were many “ifs and buts”.

If the government does not take proactive measures to tackle it by reducing duties on US products, it will have an impact, he said.

The impact on the stock market could manifest in two ways -- a reduction in exports and profits of export-oriented firms and a downturn in business opportunities in the financial sector, he said.

“If exports to the US decline, the financial sector’s trade financing will also be affected. The government should take proactive steps to address the situation,” he said. As this is a “reciprocal tariff”, he expressed hope that the government would consider reducing import duties on US products.

“Most of the goods Bangladesh imports from the US are not produced locally, nor is there any possibility of producing them here. So, the tariff can be reduced, which could help avoid a high tariff on our exports,” he added.