Salim Rehan, Economics Professor
Appearances
Global News Podcast
Trump tariffs trigger steepest US stocks drop since 2020
This has created a lot of tension among the business community as well as among the policymakers. And it's not only about, you know, that the tariff is not only imposed on Bangladesh, but also quite a lot of countries, with which Bangladesh competes in the U.S. market.
Global News Podcast
Trump tariffs trigger steepest US stocks drop since 2020
The problem is Bangladeshi exporters, they face a lot of challenges at home because of the business environment or there is a high cost of doing business and various other challenges is there for the exporters. Now, this additional pressure coming from U.S., especially with respect to this reciprocal tariff, that has created a lot of tensions and a lot of worriness, I can tell you.
Global News Podcast
Trump tariffs trigger steepest US stocks drop since 2020
As a single destination, country destination, U.S. is the largest export destination for Bangladesh's exports. It's around between 15 to 20 percent of total export goes to the U.S. And of course, a large chunk of it is ready-made garments. And also, I must tell you that Bangladesh is expected to graduate from the LDC status next year.
Global News Podcast
Trump tariffs trigger steepest US stocks drop since 2020
That is another challenge the country is going to face, where after the graduation, Bangladesh will not be able to enjoy many trade preferences the country enjoys at this moment. So all these things actually now made the whole situation very complicated.
Global News Podcast
Trump tariffs trigger steepest US stocks drop since 2020
We'll have to wait and see to what extent this new scenario translates into, as you say, that's comparative disadvantage for some countries or less comparative disadvantage for some countries over others. And this will be a very tough situation, I can tell you. These countries will try to absorb this shock and the countries which are better prepared with respect to
Global News Podcast
Trump tariffs trigger steepest US stocks drop since 2020
They have better infrastructure, better competitiveness in terms of supporting trading institutions and low cost of doing business. And also, more importantly, having more diversified export basket. They will be in a better position, I think, compared to Bangladesh, which has a very concentrated export basket, low level of competitiveness. You also know that Bangladesh, just a few months back,
Global News Podcast
Trump tariffs trigger steepest US stocks drop since 2020
had a very significant political transition. It's not only U.S. 's action which is important because there will be counteractions. And already there are some counteractions from many countries. That means the global trading regime is getting into a very uncertain territory. If the overall demand gets reduced in U.S. market, all countries will suffer.
Global News Podcast
Trump tariffs trigger steepest US stocks drop since 2020
And Bangladesh, with the kind of problems and challenges the country is going through, they will suffer or likely to suffer more than other countries.