Bangladesh US Tariff: Economic Blow to Bangladesh: US Tariff Sparks Alarm Amid Internal Turmoil, Trouble For Muhammad Yunus ?

These moves by the United States subject Bangladesh to an imminent economic and diplomatic disaster, with the threat of a 35 percent export tariff on its goods sales to the US, adding further fuel to an already unstable situation. The action is taking place in the context of mounting international pressure against the state of human rights, political suppression, and minority persecution within the country, supposedly issues that Nobel laureate Muhammad Yunus has not done much to heal as a person of moral standing and a virtual statesman in Bangladeshi politics.

Journalist Aditya Raj Kaul, who posted the development on his X page, said this is an aggressive tariff that directly reflects the country's misgovernance and inconsistencies in foreign policies. According to the U.S. administration, poor protection of minority communities in Bangladesh and increasing threats to the decreasing democratic norms are among the biggest reasons behind such a decision.

Trump’s letter to Bangladesh Interim Govt’s Chief Advisor Muhammad Yunus announcing a tariff of 35% from August 1 on all Bangladeshi products sent to United States, separate from all sectoral tariffs. pic.twitter.com/v89HPZrpD1

— Aditya Raj Kaul (@AdityaRajKaul) July 7, 2025

Trouble for Muhammad Yunus?

Muhammad Yunus, who has received worldwide acclaim due to his innovative contribution to Grameen Bank, now finds himself in an awkward situation. Although Yunus does not hold an official government position, he has long been seen as a leader in bringing about reforms and building international ties. Critics, however, say that he has stayed or has been silent as his country of Bangladesh is engulfed in giant civil protests, growing military dissonance, and atrocities against the minority.

In his absence of intervention and criticism, especially on the lack of freedom in his country and especially on the hate of governments against the dissenters and minorities, a vacuum has been created on account of his leadership. As the pressure increases inside the US due to internal problems that are blowing up and the economic pressure mounts against Yunus, his image of a stabilizing world order figure is disintegrating quickly enough.

Internal Cracks Deepen the Crisis

On the home front, Bangladesh is experiencing increased civil unrest, rising demonstrations, and a perceived gap in governance between the military and orders of civil leadership. There is increased violence against religious and ethnic minorities, and the law-and-order situation has deteriorated, with the international community not willing to overlook it anymore.

Amidst all this, Muhammad Yunus, the world-renowned microfinance businessman, through his Grameen Bank concept, is now facing criticism for his inability to stabilize or influence the way the country is run. As much as his fame has reached international standards, Yunus has been quiet or inefficient in addressing increasing authoritarianism and discontent.

Economic Consequences

With the new US, a 35% tariff imposed on imported garments is expected to cripple the export-driven Bangladesh economy, more so its clothing industry that swears by the American market. Experts fear the economy could slide into recession under the added pressure of already rising inflation and the weakening taka currency, which is losing competitiveness in international markets.

The clothing industry already accounts for millions of employees, and any upheavals might cause a mass loss of jobs and general discontent that will help to fuel some of the already raging demonstrations.

What Lies Ahead?

Analysts believe this could be a turning point that will lead to policy changes or even further isolation by the international community. The future is uncertain with strained relations between the military and civilians, unchecked persecution of minorities, and declining business incentives.