Preparations by the United States to impose additional tariffs under Section 301 of its trade law have emerged as a major concern for Bangladesh’s export sector, according to the Asian Development Bank (ADB) in its latest report, Asian Development Outlook, July 2026. The ADB warns that the move would not only increase trade costs but also create long-term uncertainty across the Asian economy.
According to the ADB’s analysis, if the proposed US tariffs are implemented, the effective tariff rate for South Asian countries, including Bangladesh, could increase by 1.2 percentage points. This could weaken the global competitiveness of Bangladesh’s ready-made garment (RMG) industry and other export products. Under the proposed framework, countries accused of failing to effectively enforce bans on goods produced through forced labour could face additional tariffs ranging from 10% to 12.5%.
The Office of the United States Trade Representative (USTR) is pursuing these tariff measures based on two separate reviews:
- Forced labour enforcement: Bangladesh is among 54 countries identified as having failed to effectively prohibit the import of goods produced through forced labour or adequately enforce related restrictions.
- Section 301 review: Under this review, the USTR has proposed additional tariffs on imports from 60 countries, including Bangladesh, India, China, Japan, and Vietnam.
The ADB report notes that while there were signs of greater stability in global trade policy earlier this year, the USTR’s latest investigations and proposed tariff measures have once again heightened uncertainty. Businesses remain concerned because there is still no clear guidance on the scope, scale, or implementation timeline of the proposed tariffs.
Experts say the ADB’s warning should serve as a strong signal for Bangladeshi policymakers. To safeguard the country's export sector and preserve favourable access to the US market, the government must strengthen the enforcement of labour laws, improve compliance with international labour standards, and address concerns related to forced labour without delay.