Trump's New Tariff Wave: What Bangladesh Exporters Must Know

Washington, July 26, 2026 — US President Donald Trump's latest global tariff salvo — duties of 10 percent or 12.5 percent on 60 countries over allegedly weak enforcement of forced-labor bans — marks the first of numerous tariff actions to be unveiled in the months ahead. 🌏

🏛 Trump and his team are moving into a new phase to build a more durable US tariff wall using more traditional, court-tested trade laws. ⚖ Upcoming probes include:

• 🏭 Excess industrial capacity — targeting 16 big trading partners including China, EU, Japan, South Korea, Mexico, and Vietnam
• 📜 Intellectual property theft — alleged IP theft by Vietnam
• 🔧 National security protections — for strategic industries from semiconductors to robotics and industrial machinery

👥 "We're at the end of the beginning of the Trump tariff agenda," said Dan Ujczo, trade specialist at Cenovus Energy. "Within the next few weeks, and certainly by the end of the summer, we will see large parts of President Trump's trade policy fully in effect." 📊

📊 Section 301 Tariffs: What Changed

⚖ Trump's new anti-forced labor duties imposed under Section 301 of the Trade Act of 1974 — the unfair trade practices statute used against China during his first term — almost directly replace a global 10 percent temporary tariff that expired on Friday. Key details:

• 📊 Coverage: 99.4 percent of US imports (per USTR office)
• 💰 US import market: $3.4 trillion
• 🏛 Legal basis: Section 301 of Trade Act of 1974 (court-tested, solid track record)
• 📈 Replaces: "Liberation Day" tariffs of 10-50% struck down by Supreme Court

💰 Revenue and Economic Impact

📊 Trump's tariff gamble has had four major effects:

• 💰 Added costs for retailers and import-dependent industries
• 🤝 Brought trading partners to the negotiating table, yielding concessions
• ⚠ Swift retaliation from China leading to a delicate truce
• 💰 Filled US fiscal coffers — Liberation Day tariffs alone yielded $166 billion in revenue

⚠ However, refunds to importers have now turned those collections negative. The 150-day temporary tariffs added $31 billion in assessed revenue through July 5, but if a federal court ruling stands, that money is also subject to refund. 📉

👥 Expert Analysis: Durable Tariff Wall

📊 Josh Lipsky, chair of international economics at the Atlantic Council, said subsequent administrations may become addicted to tariff revenue:

"The tariff wall is being rebuilt strong brick by strong brick, and it's very durable."

🌏 With US public debt approaching $40 trillion, the fiscal incentive for maintaining tariffs is significant. 💰

📋 More Tariffs Coming: USTR Confirms

🏛 US Trade Representative Jamieson Greer made clear that Trump will use everything at his disposal to erect tariffs:

"The specific authorities this administration is using have changed, but the trade strategy has not."

📊 Greer said the layers of tariffs being rebuilt will not exceed caps included in negotiated deals:

• 🇪🇺 EU, Japan, South Korea: 15% cap
• 🇻🇳 Southeast Asian countries: Higher rates (specific caps TBD)
• 🇨🇳 China: ~20% cap (agreed by Trump and Xi Jinping last November), on top of 25% first-term tariffs

🇧🇩 Impact on Bangladesh

⚠ For Bangladesh, the new 10% tariff on exports to the US comes at a critical time when the RMG sector is already struggling with declining exports, gas shortages, and weak global demand. 👕 The tariff makes Bangladeshi garments more expensive in the US market, potentially losing market share to competitors.

🌏 Unlike India, which secured exemptions for pharmaceuticals, smartphones, steel, and auto parts through bilateral trade negotiations, Bangladesh has not yet secured any sector-specific exemptions. 📊 The lesson from India's experience is clear: proactive engagement with the US on trade negotiations, including sector-specific exemption requests, could help mitigate the tariff impact on Bangladesh's export-oriented industries.