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He said preliminary assessments suggest home textiles, heavyweight jerseys and denim products will bear the brunt of these tariffs due to their thinner profit margins.

For these segments, Chowdhury said that a 37 percent duty could erase competitiveness entirely without prompt intervention.

He also suggested reviving a longstanding trade proposal that could serve as a centrepiece in negotiations.

“We should reinvigorate our request for duty-free access when using US cotton. This existing framework – where garments manufactured from American cotton receive preferential treatment – could be expanded to offset the new tariff burden while simultaneously benefiting US agricultural interests,” he added.

Meanwhile, Faruque Hassan, a former president of the BGMEA, warned of impending market disruptions, opining that the new tariffs would trigger a brutal price war across all exporting nations.

“Every competitor will be forced to absorb costs or compromise on quality to maintain their market share. In this environment, our traditional cost advantage alone may prove insufficient.”

As such, Hassan advocated moving beyond price competition.

“The solution lies in vertical integration and value addition. By bringing more production processes – from fabric to accessories – under one roof, we can achieve the efficiency gains needed to offset these tariffs while improving our positioning in the global supply chain.”

Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue, highlighted Bangladesh’s growing influence as a cotton importer.

He said Bangladesh’s annual purchases of US cotton now surpassed $1 billion, making the country fifth-largest global buyer. “This gives us substantial leverage that remains underutilised in trade discussions.”

The economist proposed a comprehensive negotiation framework. “We should structure a package deal that ties our continued cotton imports to tariff relief for finished garments. Such an arrangement would secure stable demand for American farmers while preserving our export competitiveness – the definition of a win-win scenario.”

As Bangladesh prepares for complex negotiations, trade experts unanimously stressed the need for coordinated action across government and private sectors.

The consensus is that while the challenges posed by the new tariffs are substantial, Bangladesh retains multiple avenues to protect its vital export interests through strategic diplomacy, calculated concessions, and the smart deployment of its growing economic influence.

The coming months will prove critical in determining whether Bangladesh can transform this trade policy upheaval into an opportunity to secure more favourable terms and deepen economic ties with its most important export destination.

With the right combination of negotiation strategy and domestic adaptation, industry leaders remain cautiously optimistic that the nation can not only weather this storm but emerge with a stronger, more diversified trade relationship with the United States.

Trade experts advised that Bangladesh must immediately activate all available diplomatic channels to address the sweeping US tariff measures.

This includes convening urgent meetings under the Trade and Investment Cooperation Forum Agreement (Ticfa) while accelerating negotiations for more comprehensive trade pacts like a Free Trade Agreement (FTA) or Comprehensive Economic Partnership Agreement (CEPA).

Mahfuz Kabir, research director at the Bangladesh Institute of International and Strategic Studies, cautioned against over-reliance on tariff tweaks.

He said, “The National Board of Revenue’s standard measures won’t suffice here. Ticfa provides a ready-made platform for swift, high-level dialogue to contain the damage.”

Zahid Hussain, former lead economist of the World Bank’s Dhaka office, outlined an urgent action plan for exporters.

“The entire sector must unite under BGMEA and BKMEA to establish a non-negotiable position - these tariff costs cannot fall solely on manufacturers,” he said.

The economist painted a grim picture of the alternatives. “With razor-thin margins already, especially in woven garments, absorbing these duties would be catastrophic.”

Hussain highlighted the particular injustice facing shipments already in transit.

“Contracts signed months ago never accounted for these tariffs. Buyers invoking force majeure would be completely inappropriate - this isn’t an act of God but a policy change,” he said.

Ashikur Rahman, principal economist at the Policy Research Institute of Bangladesh, contextualised the move’s seismic implications.

He said, “By invoking an ‘economic emergency’ to bypass WTO rules, the US has potentially unravelled decades of multilateral trade consensus.”

The economist noted Bangladesh’s paradoxical position. “While our nominal tariffs average 26 percent, certain sectors like automotive face much higher duties. Yet we impose zero tariffs on strategic US exports like cotton - a potential bargaining chip.”

Preferring anonymity, a Bangladesh Bank official drew parallels with past trade shocks.

The official said that after the Multifibre Arrangement ended in 2005, Bangladesh adapted. “Today, despite 12 percent average duties, the US remains our top market because our apparel is essential.

“Exporters must stop acting as price-takers. When fuel costs rise, we don’t stop importing - we adjust. This requires the same pragmatism.”

Taskeen Ahmed, president of Dhaka Chamber of Commerce and Industry, warned of cascading economic consequences from the US tariff hike.

“This isn’t just an export problem - it’s a macroeconomic timebomb,” he cautioned.

“Shrinking export earnings will strain our foreign reserves, potentially triggering currency depreciation and imported inflation that could ripple through the entire economy.”

The garment sector’s crisis carries particular alarm bells. Ahmed said, “We’re staring at potential mass unemployment that could undermine Bangladesh’s hard-won economic stability.”