In this context, the revised reciprocal tariff rate on Bangladeshi products in the US markets is now comparatively consistent with the competing countries, and that indicates reducing risk of trade diversion. It possibly lowers the risk of a major shock on the export of the readymade garment sector.

Since the modifying reciprocal tariff rate in China has not yet been finalised, an important uncertainty remains in the global trade perspective. What rate the US will set for China, and that will play the prime role in the global trade flow in future because of China’s important position in the global production system, as well as the country’s various overlapping similarities with various export sectors of Bangladesh.

If China sees an imposition of a higher tariff rate, demand may shift in favour of the South and Southeast Asian exporting countries including Bangladesh. On the other hand, if China gets favoured relatively, competition may intensify. So, the final decision on China will become important for the reconfiguration of the global trade flows and dynamics.