Donald Trump's tariff pause for 90 days has given local exporters some relief as they see some silver lining in the Sino-US trade spat as companies looking to diversify might relocate to Bangladesh.
Economists and exporters have also stressed the need for a roadmap to make the most of engaging and negotiations in the process.
Experts, however, called on garment exporters to negotiate with their respective buyers to offset the additional 10-per cent tariff burden.
Terming the pause 'good', of Policy Research Institute of Bangladesh (PRI) chairman Dr Zaidi Sattar says it gives some time.
The tariffs have rocked the world economy with shrinking world stock and bond markets, he said adding the 10 per cent tariff is nothing but neutralization of overvaluation of US dollar due to its high demand.
When asked, he, however, said the US-China trade and tariff war has further intensified, although extra 10-per cent tariff has been applicable except China.
"Bangladesh export might increase due to the trade and tariff war between the US and China," said Dr Sattar, suggesting exporters, especially garment makers, take required preparations and negotiate with buyers to not accept the entire burden.
On the recent trade developments, Youngone Corporation chairman Kihak Sung said, "Today (Thursday) everybody relieved now. Yesterday we were worried. Yes, Trump has put a three-month hold of the tariff exercise."
The three-month suspension of the Trump-era tariff policy brings some relief and the Bangladesh government's proactive measures in this regard are commendable, according to him.
Epic Group chairman Ranjan Mahtani spoke of Bangladesh's ability to gain advantage of the tariffs, hoping that the government would help exporters getting relief from the additional tariff burden over the next three months.
Dr Rubana Huq, former president of the Bangladesh Garment Manufacturers and Exporters Association, said: "The US has allowed us 90 days' respite. But we hope to wake up with a lesser scar after this drastic operation threat."
She hopes the government will immediately engage with the Trump administration to ensure that negotiations have a definite roadmap.
Maf Shoes executive director Shahadat Ullah said the US-China trade war opened up an opportunity for Bangladesh as buyers and Chinese investors have long been looking to diversify business.
Countries like Bangladesh, India, Cambodia, Pakistan and Vietnam would gain from the war, he said, adding that one of his German buyers has brought some Chinese dye and chemical makers in Bangladesh.
"But Bangladesh is yet to take the opportunity at a desired level due to some internal factors like high financing cost and infrastructural bottlenecks," he said expecting growth in business.
Meantime, welcoming this tariff respite and the lowering of "reciprocal" tariffs as well as additional tariffs placed on Chinese exports by President Trump on Wednesday, American brands have sought certainty and more comprehensive approach to restore predictability and affordability to market.
In an immediate reaction, Steve Lamar, president and CEO of American Apparel and Footwear Association (AAFA), expressed concern over this minute-by-minute trade policy chaos.
"The on-again, off-again tariff policy is forcing companies to careen between chaos and costs. While we welcome this limited pause to give negotiators in the US and dozens of trading partners a chance to hammer out sustainable outcomes, it is only a first step in a policy that needs to be more comprehensive, predictable, and durable if we want to encourage the kind of investments that will support more US jobs."
"This policy continues to subject US imports of our industry's largest trading partner to an unsustainable tax," added Mr Lamar.
He also hopes that this limited pause can be extended to all countries so that US companies, now caught in the crosshairs of a frenzied trade war, can focus their energies on encouraging the US and its key trading partners to negotiate an end to both US and foreign trade barriers.
"We further urge the administration to work closely with Congress, and with all stakeholders, so that we can forge a more durable trade policy that is based on partnership of reciprocal trade, not fear of crushing tariffs."
munni_fe@yahoo.com
