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BGMEA and BKMEA to collaborate intensely. These bodies may also reach out to US counterparts, such as the American Apparel and Footwear Association, to build a case against the tariff. We’ve overcome crises before – from Rana Plaza to the pandemic – and we can do so again.

WHAT THE GOVERNMENT SHOULD DO

While businesses adjust, strong government action is crucial. Bangladesh must open formal talks with US counterparts to seek relief or exemptions. Trade officials should make the case that this tariff hurts a key ally and a developing country that imports US goods like cotton duty-free.

Bangladesh can also coordinate with countries like Vietnam and Sri Lanka to raise concerns at the WTO. A united front adds weight.

Longer term, we should seek trade agreements – such as a Free Trade Agreement or inclusion in a revived GSP. To support this, Bangladesh must address US concerns, especially around labour rights and factory conditions.

Some suggest retaliatory tariffs, but this carries risks. We depend on US imports like cotton and machinery. Such leverage should be used only as a last resort.

Domestically, the government should provide relief – tax breaks, credit support, or temporary financial aid – to help factories weather the shock.

Finally, we must reduce over-dependence on garments. Within RMG, incentives for higher-value products and local textile production are vital. Beyond that, boosting sectors like pharmaceuticals, IT, leather, and agro-products will help cushion future shocks.

MOVING FORWARD

As I write this, both as a banker and a concerned Bangladeshi, I feel the weight of the 37 percent US tariff – a jarring reminder of how exposed we are to global forces. Our best insurance now is to be prepared. Like what we do in banking, we must spread our risk – finding new buyers, moving up the value chain, and future-proofing our economy. This tariff is a setback, but not the end of our story.

The author is the managing director and CEO of City Bank.