Bangladesh’s infrastructure leaders face mounting concerns over President Trump’s proposed 37% tariff on Bangladeshi exports, with industry pioneers warning of devastating consequences for the country’s manufacturing workforce and energy-dependent economy.
Muhammed Aziz Khan, founder of Summit Group and Bangladesh’s largest independent power producer, published a detailed analysis arguing that tariffs would “jeopardise the livelihoods of millions of our citizens, especially the four million workers, most of them women, who power our RMG sector”. Bangladesh’s ready-made garment industry employs approximately 80% women workers, making female economic empowerment particularly vulnerable to trade disruptions.
Infrastructure and Economic Foundations Under Pressure
Bangladesh’s garment sector generates over $47 billion in annual export earnings, representing 84% of total exports. As chairman of Summit Group, which operates 14 power plants providing more than 2,000 MW capacity across Bangladesh, Aziz Khan understands how energy infrastructure underpins manufacturing competitiveness. His company helped transform Bangladesh from a country where only 20% had electricity access in the 1990s to universal electrification today.
Trump’s tariff announcement has already triggered immediate supply chain disruptions. Multiple Bangladeshi exporters received suspension notices from US buyers for ongoing purchase orders following the announcement. Some buyers demanded price reductions to offset potential losses from increased tariff burdens, while others requested shipment delays.
Manufacturing Competitiveness at Risk
Current tariffs on Bangladeshi garments already average approximately 15%, but Trump’s additional 37% levy would create combined duties exceeding 52%. Industry analysis suggests this taxation level could force US retailers to shift sourcing to alternative countries with lower duties, such as India or Mexico.
Summit Group’s experience building Bangladesh’s energy infrastructure provides Aziz Khan unique insight into how trade disruptions affect industrial development. His company established partnerships with international firms including General Electric and Japan’s JERA precisely to access global markets and technology transfer. Trade barriers now threaten similar collaborative frameworks across Bangladesh’s manufacturing sectors.
Aziz Khan emphasized broader implications beyond immediate trade figures. “A 37% tariff would not hurt the powerful. It would hurt women who stitch for survival, small exporters who built their businesses from nothing, and families who dream of a better life,” he wrote.
Regional Development Implications
Bangladesh’s transformation from one of the world’s poorest countries in 1971 to graduating from Least Developed Country status by 2026 represents unprecedented economic progress. Poverty rates declined from over 40% in 2005 to below 20% today, with GDP exceeding $460 billion.
This economic foundation depends heavily on reliable energy infrastructure that companies like Summit Group have built over decades. Power generation capacity directly correlates with industrial productivity, making energy security essential for maintaining competitive manufacturing costs. Trade tensions that undermine manufacturing competitiveness could reduce demand for electricity, affecting infrastructure investment cycles.
Strategic Response to Trade Challenges
Nobel Laureate Muhammad Yunus, leading Bangladesh’s interim government, has begun diplomatic efforts to address trade tensions. His administration requested a three-month pause on tariff implementation while highlighting Bangladesh’s proactive measures to boost American imports.
Industry leaders like Aziz Khan provide critical perspective on how infrastructure development creates economic resilience. Summit Group’s diversification across power generation, telecommunications, and port operations demonstrates how integrated infrastructure platforms can support broad-based economic growth. However, export-dependent economies remain vulnerable to sudden policy shifts in major markets.
Economic shocks typically radiate from urban manufacturing centers to rural areas dependent on remittance income from garment sector employment. Workers living paycheck to paycheck face increasing job insecurity, while factory owners confront potential shutdowns. Aziz Khan’s analysis underscores that trade relationships carry consequences extending far beyond diplomatic relations, directly affecting millions of working families across Bangladesh’s industrial landscape.