Businesses urge review of US trade deal after court ruling

Local business leaders have urged the government to review the country’s reciprocal trade agreement with the United States after the US Supreme Court on Friday ruled that Trump’s sweeping emergency tariffs are illegal.

The trade deal, signed on February 9 by the interim government, had already been facing criticism. Businesses and economists argued that Bangladesh conceded too much in return for a reduction of the reciprocal tariff to 19 percent.

Besides, the deal was signed just two days before the national election, prompting questions over whether such a commitment should have been left to an elected government.

The court ruling has now complicated matters for countries that have already signed deals with the US.

By invalidating parts of the tariff regime and prompting President Trump to introduce a fresh 10 percent global duty under a separate legal authority, the ruling has cast worldwide uncertainty over how existing bilateral arrangements will operate.

Amid this chaos and confusion, Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), described the pact as “uneven”.

“The recently signed reciprocal trade agreement with the US is, in my view, an unequal deal. It should be reviewed to ensure that Bangladesh’s interests are adequately protected,” he said.

While the tariff agreement provides zero tariff access for products manufactured with US raw materials, Hatem said the benefit is conditional and limited. “In exchange, Bangladesh appears to have conceded on several difficult conditions,” he added.

After the court ruling, he now questioned the practical value of the new 10 percent levy. “It is still unclear how long this will continue,” he said, noting that the additional duty offers no distinct advantage to Bangladesh exporters.

AK Azad, managing director of Ha-Meem Group, said the legal development in Washington raises a more fundamental issue. “The court has struck down the tariff framework. If that is no longer in place, then what happens to the agreement signed just before the election?” he asked.

Azad said it is unclear whether the agreement automatically loses force following the ruling.

He suggested that the 10 percent global tariff could also face legal challenge, though he does not expect a sharp immediate impact on Bangladesh exports. Even if the agreement remains intact, he said, the government should reassess its options.

Anwar Ul Alam Chowdhury (Parvez), president of the Bangladesh Chamber of Commerce and Industry, said the US retains multiple statutory tools to shape trade policy.

Although certain tariff measures were declared unlawful, Washington has already invoked alternative provisions to impose the 10 percent duty and could initiate further trade investigations, he commented.

“They have multiple options at their disposal. We cannot predict which instruments they may use next,” he said.

In that context, Parvez questioned the haste in finalising the agreement and urged policymakers to prepare a clear negotiating strategy grounded in US trade law. “We need proper preparation and a realistic evaluation of our commitments,” he said.

Taskeen Ahmed, president of the Dhaka Chamber of Commerce and Industry (DCCI), also criticised the timing of the deal, describing the decision to sign it days before the election as “not prudent.”

“Such an agreement should ideally have been advanced by an elected government after carefully weighing all implications,” he said.

Ahmed said the DCCI has asked the new government to explore ways to review the arrangement. He said further measures from Washington could follow and that the agreement might affect Bangladesh’s trade relations with major partners such as China and India.

“The government should strategically assess the broader trade implications before moving forward,” he said.

Riad Mahmud, managing director of National Polymer Industries PLC, said Bangladesh could find itself in a stronger position if the agreement is rendered void as a result of the US court decision. However, there are several uncertainties.

There is confusion, he said, over whether the agreement lapses automatically or remains legally binding despite changes in the US tariff framework.

Asif Ibrahim, vice-chairman of Newage Group of Industries, described the ruling as a significant development in US trade policy.

He said businesses value stability, transparency and rule-based systems, which underpin investment decisions and long-term planning.

“The United States remains a valued and strategic trading partner for Bangladesh,” he said. “We hope both governments will continue constructive engagement to ensure predictable market access, strengthen bilateral economic ties and safeguard the interests of businesses and consumers in both countries.”