The International Chamber of Commerce–Bangladesh (ICCB) has called on the government to form a task force under the commerce ministry to negotiate more favourable trade terms with the United States amid concerns over a steep tariff hike on Bangladeshi exports.

In a statement issued today following its 30th annual council meeting in Dhaka, the ICCB warned that the impending 35 percent tariff, due to take effect from August 1 unless an agreement is reached, could severely impact Bangladesh’s export sector—particularly the ready-made garment industry—and threaten employment.

The final round of tariff talks between Dhaka and the United States Trade Representative is scheduled to begin on July 29. The ICCB urged immediate, coordinated action to protect market access and mitigate economic fallout.

ICCB President Mahbubur Rahman presented a report outlining the global and domestic economic challenges affecting Bangladesh. The analysis highlighted growing geopolitical tensions, such as the Red Sea shipping disruptions and conflicts in Ukraine and the Middle East, alongside the return of protectionist trade policies following Donald Trump’s re-election.

“Inflation and trade fragmentation are significant risks for developing economies,” the ICCB noted, adding that Bangladesh’s fragile financial sector, characterised by a non-performing loan rate nearing 25 percent, adds to economic uncertainty.

The chamber highlighted additional vulnerabilities, including a low tax-to-GDP ratio, a heavy reliance on imported fossil fuels, and lagging foreign investment compared to regional peers such as Vietnam. It called for urgent investment in domestic energy exploration and renewable energy, as well as reforms to the National Board of Revenue.

Bangladesh’s upcoming graduation from the status of a least developed country in 2026 could further expose its exports to higher tariffs—up to 11.5 percent in the EU and UK—unless transition strategies are implemented. The ICCB urged diversification beyond garments, citing pharmaceuticals, IT, and agro-processing as potential areas for growth.

The chamber also called for immediate improvements in cybersecurity infrastructure and regulatory frameworks to support a more resilient economic environment.