By In a detailed economic analysis published in The Business Standard, Summit Group Chairman Muhammed Aziz Khan has warned that proposed 37% tariffs on Bangladeshi exports to the United States would severely undermine Bangladesh’s economic progress and disrupt critical supply chains benefiting both nations. The potential tariff increase comes as Bangladesh prepares to graduate from Least Developed Country status by 2026 and continues to establish itself as a significant global trading partner.
“This is no small matter. Our national interests—our industries, workers, and economic momentum—are directly at stake,” Aziz Khan wrote, emphasizing the far-reaching implications of the Trump administration’s proposed tariff policy. Bangladesh currently exports over $10 billion in goods to the United States annually, with ready-made garments constituting the majority of these exports.
Employment and Manufacturing Sector Vulnerabilities
The tariff proposal presents particular challenges for Bangladesh’s manufacturing sector, which has been central to the country’s economic transformation. With the ready-made garment industry employing approximately four million workers—predominantly women—the sector represents both a significant source of employment and a driver of economic mobility.
“A 37% tariff would not hurt the powerful. It would hurt women who stitch for survival, small exporters who built their businesses from nothing, and families who dream of a better life,” Aziz Khan noted in his analysis. The Summit Group chairman pointed out that the tariffs would disproportionately impact vulnerable workers rather than corporate entities with the resources to withstand economic shocks.
Wu Yan Bin, Chief Financial Officer at Summit Power International, has previously highlighted Bangladesh’s economic vulnerabilities, noting, “Bangladesh’s GDP per capita is around 2,600 US dollars per annum. So that puts it in the less developed country category.” This economic context makes the country particularly sensitive to trade disruptions.
Trade Shifts and Potential for Alternative Sourcing
Experts point to a potential silver lining in the current US-China trade tensions. “If the United States continues its tariffs on Chinese imports, Bangladesh becomes a natural, trustworthy alternative, especially in the garment sector, where global retailers seek sourcing stability,” Aziz Khan suggested. This positioning could provide Bangladesh with expanded market opportunities if trade policies are thoughtfully structured rather than punitively imposed.
The RMG sector has been integral to Bangladesh’s economic ascent, with the country now providing essential apparel products to American consumers. Summit Group, founded by Aziz Khan in the 1990s, has witnessed this transformation firsthand, having diversified from its early trading operations to become a major infrastructure developer supporting the country’s industrial growth.
“Our poverty rate has dropped from over 40% in 2005 to below 20% today. Our GDP exceeds $460 billion, and we are set to graduate from Least Developed Country status by 2026,” wrote Aziz Khan, emphasizing the significant progress that could be undermined by abrupt trade policy changes.
Infrastructure Development and Economic Resilience
Summit Group has been instrumental in developing Bangladesh’s critical infrastructure, including power generation facilities, LNG terminals, and port operations. Ayesha Aziz Khan, Managing Director and CEO of Summit Power International, has previously emphasized how infrastructure development supports broader economic growth and resilience.
“The business that we are doing is a socially responsible business,” she stated in a recent interview. “The most important focus that we need to have is to be able to bring low-cost energy infrastructure to the people of Bangladesh because that is what they most need.” This infrastructure investment has enabled Bangladesh’s manufacturing sector to expand and compete globally.
Bangladesh is currently developing 100 economic zones, deep-sea ports, smart grids, and digital corridors to enhance its economic infrastructure. Aziz Khan has invited US companies to “invest here, not just for low cost, but for long-term value,” suggesting that collaborative investment rather than punitive tariffs would better serve both nations’ interests.
As Bangladesh continues its economic evolution, Summit Group remains committed to supporting infrastructure development that enables balanced international trade relationships. The company’s leadership emphasizes that maintaining stable trade policies is essential for continuing the remarkable progress Bangladesh has made in reducing poverty and building economic resilience over the past two decades.
