The International Chamber of Commerce Bangladesh (ICCB) has suggested forming a taskforce to tackle the challenges arising from the imposition of reciprocal tariffs by the US and undertaking diplomatic negotiations with the US authorities.

The proposals were made at a press briefing at Golden Tulip The Grandmark Dhaka yesterday.

The ICCB recommended forming the taskforce under the commerce ministry and including leading exporters, importers, officials from the Export Promotion Bureau and customs.

"The taskforce may meet at regular intervals to monitor trade trends between Bangladesh and the US, to reduce the trade gap and suggest remedial measures," ICCB President Mahbubur Rahman said at the event.

The remedial measures include resolving issues that hinder smooth trade between the two countries, he added.

He appreciated the prompt action taken by Chief Adviser Muhammad Yunus in convening an emergency meeting to assess the impact of the hike in US tariff and to formulate an appropriate response strategy.

"The government is heading in the right direction. If it forms a taskforce and monitors the situation daily, it will be easier to negotiate and manage the impact effectively," Rahman said.

Bangladesh must undertake diplomatic negotiations with the US authorities for more favourable trade terms. This involves highlighting the mutual benefits of a balanced trade relationship and seeking exemptions or reductions in the imposed tariffs, he said.

He believes that this government was capable of better negotiations as the chief adviser was a globally renowned personality.

People should not be too worried as the tariff was imposed on all competitor countries, for which the impact would befall all of them, he said.

The veteran businessman also said that to remain competitive and effectively respond to increased tariffs on exports to the US, it is essential to improve infrastructure, logistics, and port operations.

Besides, enhancing the competitiveness of the garments sector by investing in technology, workforce skills development, and adherence to international compliance standards are crucial, he added.

Naser Ezaz Bijoy, vice-president of the ICCB, said the imposition of the tariffs would impact the profit margins of exporters as buyers would try to shift the rise in costs onto producers.

Moreover, China, Vietnam and other competitor countries will try to increase exports to European countries, where Bangladesh holds a significant market share.

So, higher supplies may reduce prices, which could also impact profit margins, said Bijoy, who is also the CEO of Standard Chartered Bangladesh.

However, the volume of exports may not be impacted as almost all the competitor countries will face the same situation following the rise in tariffs, he added.

There is a misconception that the tariff is going to rise from 15 percent to 37 percent. However, the tariff will be an additional 37 percent, or higher than the previous rate, said Fazlul Hoque, a former president of the Bangladesh Knitwear Manufacturers and Exporters Association.

Goods that have already been shipped before April 5 will not face the tariffs. However, goods worth around $2 billion which are currently in the process of being shipped will be faced with the hike in tariffs.

"Who will bear it? Buyers will try to pass it on, at least they will try to pass on half of it. If producers are forced to bear it, they will be hugely impacted," he said.

This is the immediate impact, so the government should think of these goods on a priority basis, Hoque added.

Kamran T Rahman, president of the Metropolitan Chamber of Commerce and Industry, Simeen Rahman, vice-president of the MCCI, Taskeen Ahmed, president of the Dhaka Chamber of Commerce and Industry, and Abdul Hai Sarkar, chairman of the Bangladesh Association of Banks, were also present at the event.