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Dhaka, July 19, 2025 — Bangladesh is set to face the highest effective tariff rate (ETR) among all United States trading partners—nearly 50 percent—under the renewed tariff regime spearheaded by former US President Donald Trump, according to a new update from Fitch Ratings.

The US administration has formally communicated a new 35-percent tariff on Bangladeshi exports, which, when combined with the existing 15-percent duty, results in a combined ETR of approximately 50 percent. This move is expected to take effect from August 1, positioning Bangladesh at a significant disadvantage in its trade with the United States.

The findings were published in Fitch’s US Effective Tariff Rate Monitor, an interactive tool designed to track tariff developments and measure the real impact of US trade policies across countries and sectors.

No Exemptions for Bangladesh

Unlike several other countries, Bangladesh will not benefit from exemptions or product-specific carve-outs—such as those applied to oil, gas, copper, or pharmaceuticals—which has left the country exposed to the full impact of the tariff hike.

Fitch’s analysis indicates that Bangladesh’s lack of preferential trade arrangements with the US, combined with its heavy reliance on exports like apparel and textiles, puts it at the forefront of countries adversely affected by the new trade measures.

Dhaka Seeks Diplomatic Remedy

In response to the looming tariff implementation, the government of Bangladesh is actively engaging in diplomatic efforts to address a range of non-tariff-related conditions set by Washington. These discussions are part of an urgent attempt to avert or delay the application of the heightened duty rates.

Officials familiar with the matter said Dhaka is working to present its case for reconsideration, highlighting the disproportionate impact such tariffs could have on a developing economy and a long-time US trade partner.

Global Trade Landscape Shifting

According to Fitch, the US’s own ETR is projected to rise from 14.1 percent to 19.4 percent, driven by the implementation of new reciprocal tariffs and additional duties on products such as copper. Should further tariffs—currently under review—be imposed on semiconductors, electronic components, and pharmaceuticals under Section 232 of US trade law, the overall US ETR could increase to 23.7 percent.

While China’s ETR remains unchanged at 41.4 percent, Bangladesh is now expected to surpass all countries, due to the absence of trade relief mechanisms and the concentration of its export portfolio.

Other Key Tariff Adjustments

Fitch also noted significant changes for several other major US trading partners:

• Vietnam and Indonesia have entered new bilateral agreements with reciprocal tariffs of 20 percent and 19 percent, respectively.
• Canada’s ETR is set to rise from 7.5 percent to 11.7 percent, while Mexico’s will increase from 9.5 percent to 13.1 percent.
• The European Union will see reciprocal tariffs rise to 30 percent, resulting in country-specific ETRs ranging from 12 percent to over 30 percent, depending on individual trade compositions.

President Trump has also floated the idea of imposing a blanket tariff of 10–15 percent on approximately 150 countries, further escalating concerns over rising global protectionism.

Monitoring Tool to Track Real-Time Changes

Fitch’s ETR Monitor enables users to model sector-specific and country-level scenarios based on current trade volumes and tariff structures. The tool provides dynamic updates as new trade policies are announced or revised, offering insights into how evolving US trade relations could affect its global partners through 2025.

As the deadline nears, trade analysts warn that without meaningful negotiations or exemptions, Bangladesh’s export-driven economy could suffer significant setbacks, especially in the readymade garment sector, which remains heavily reliant on the US market.