The Asian Development Bank (ADB) has warned that Bangladesh’s GDP growth could be negatively affected by the United States’ proposed 35 per cent retaliatory tariff.
The bank said the growth forecast for the fiscal year (2025–26) has been revised downward, mainly due to a slowdown in the export and industrial sectors, as well as the potential effects of the US tariffs. However, the ADB did not specify a projected growth rate.
The concern was raised in the July edition of the Asian Development Outlook.
The tariff, set to take effect on August 1, poses risks particularly to Bangladesh’s garment sector and labour market, according to S&P Global.
Further discussions between Bangladesh and the United States Trade Representative (USTR) are scheduled for July 29 in an attempt to negotiate a reduction in the proposed tariff.
Despite these concerns, the US-based credit rating agency has maintained Bangladesh’s credit outlook as “stable.”
On Thursday (July 24), the agency released a report maintaining Bangladesh’s long-term sovereign credit rating at ‘B+’ and the short-term rating at ‘B’.
The agency also noted that the upcoming national election in 2026 could be a pivotal moment in shaping the country’s economic trajectory.