B Mirror Report: Bangladesh’s garment sector is expected to breathe a sigh of relief after the US Supreme Court curtailed former President Donald Trump’s authority to impose sweeping tariffs under emergency powers. By limiting the use of the International Emergency Economic Powers Act (IEEPA) to enforce broad-based tariffs, the court has eased long-standing concerns among Bangladeshi apparel exporters.
The scrapping of the IEEPA-based tariff regime significantly reduces the risk of sudden tariff hikes that had been looming over Bangladesh. Although the recently agreed 19 percent reciprocal tariff between the two countries remains in place, the court’s intervention could help restore stability to global trade policy.
While President Trump has announced a new 10 percent global tariff under a different law, this measure is unlikely to be discriminatory toward Bangladesh, as it would apply equally to all countries. For Bangladesh’s apparel industry, more important than the tariff rate itself is the existence of a predictable environment that enables long-term planning. If the new tariff framework proves more stable than previous volatile policies, it could help rebuild confidence among US importers and maintain a steady flow of orders over the long term.
However, it would be unrealistic to expect an immediate surge in orders from US buyers following the court’s ruling. American retailers typically finalize their sourcing plans several months in advance. In light of the changing legal landscape, some brands may adopt a cautious stance in the short term. Nonetheless, as legal uncertainties subside and higher tariffs continue to hang over major competitors like China, US brands may increasingly turn to Bangladesh as part of their sourcing diversification strategies.
Meanwhile, the trade agreement hastily signed by the interim government with the United States just days before the national election is now facing serious scrutiny. Analysts suggest that, given the changed circumstances and concerns that Bangladesh’s interests were not adequately protected, the future of the deal remains deeply uncertain. In the current context, Bangladesh’s competitiveness in the global market will depend less on tariff concessions and more on improving productivity, reducing lead times, and maintaining compliance standards.
Ultimately, the landmark ruling by the US Supreme Court has drawn a constitutional boundary around the executive branch’s unilateral trade powers. As a result, future tariff decisions are likely to involve greater participation from the US Congress, fostering a rules-based and healthier trade environment for exporting nations like Bangladesh. Transparent and systematic trade decisions by the US administration rather than sudden executive orders will better serve Bangladesh’s long-term national interests.
