After months of escalation and failed dialogues, and despite warnings by economists, the United States of America and China have officially fired the first shots of what is being termed "the largest trade war in history." With the US imposing tariffs on USD 34 billion worth of Chinese products, and China retaliating with an equal tariff on an equal number of goods, the spill-over effect of this clash will surely be felt worldwide. The US has further imposed tariffs on a number of products and raw materials from countries like Canada, Mexico, the European Union and Japan. For how long and to what extent the escalations will continue is anybody's guess, but one thing is sure: countries worldwide, including Bangladesh, may not be impervious to its impacts.

Experts have already said how this trade war would affect the US consumers and companies and affect global trade. Beyond that, Bangladesh now should brace for the likely impacts it could face. Here, it is relevant that we assess the potential impacts for our country—experts have expressed views that the trade war comes with both positive and negative impacts for us. Imposition of tariffs could hurt Bangladesh through increased costs of production and lower purchasing power. On the other hand, they have also stated that tariffs on Chinese apparel could potentially mean a good opportunity for Bangladesh.

Going by the months of escalation, the trade war in the offing is unlikely to end anytime soon. Thus, how we assess and prepare for the upcoming months will largely determine what we gain or lose. It is time for the Ministry of Commerce, professionals and the FBCCI in particular to come together to see how we can best deal with the positives and the negatives that might stem from the evolving situation.