The US had started globalisation and now it is relinquishing the system as Donald Trump has thrown away the market economy, said eminent Bangladeshi economist Rehman Sobhan.
He also said that the US is reverting to the 19th-century period of import substitution, with the weaponisation of economic instruments.
He was speaking at a roundtable titled 鈥楾rade Policy in the Era of Tariff Shenanigans: Global and Bangladesh Perspectives鈥�, organised by the Policy Research Institute of聽 Bangladesh in the capital on Tuesday.
He pointed out that now it is no longer the survival of the fittest; rather, those who can negotiate or make the best agreements will survive.
鈥楾he world is moving again from a rules-based trading system to the command economy of the Stalin era,鈥� he added.
Regarding the US imposition of new tariffs, he said that Bangladesh should shift its trade priorities, urging businesses to capture duty-free access to the regional markets rather than being overly obsessed with the US market.
He also said there is a need to 鈥榣ook East and look within鈥� as Bangladesh enjoys a duty-free access to regional destinations like China and India.
The country enjoys a more than $6 billion trade surplus with the USA, and a portion of its exports could be affected if local exports face higher tariffs.
Rehman Sobhan, also the chairman of the Centre for Policy Dialogue, said that an overreliance on the US market could be detrimental, and perhaps its decline will serve as a call to focus on the future.
He also pointed out that portions of the $6 billion trade flow could be redirected to China and India, stressing that businesses must take responsibility for seizing these opportunities.
He also said that Bangladesh should seek investment from regional players rather than depending on the US, mentioning China鈥檚 role as a significant source of capital and services.
However, he also said strategic moves could still attract American investors to Bangladesh.
PRI chairman Zaidi Sattar presented the keynote at the roundtable and said the new US tariff regime marks a frontal attack on the rules-based global trade order.
He also said key rivals like Vietnam, India, and Cambodia have already begun engaging with the US and urged policymakers to take proactive responses.
He stressed the need for diversifying the market and products and reducing anti-export barriers, such as supporting underdeveloped sectors.
He also proposed revising tariffs on US goods such as automobiles and alcoholic beverages and strengthening regulations to address non-tariff barriers, including better enforcement of intellectual property rights and anti-corruption measures.
Selim Raihan, executive director of the South Asian Network on Economic Modelling, said that the US has targeted tariffs while development aid has been downsized.
He observed that the new US tariffs could shift the international trade order, making it more complicated and disruptive.
In this regard, he urged the policymakers to focus on bilateral dialogue to absorb the shock.
However, Mohammad Abdur Razzaque, chairman of Research and Policy Integration for Development, cautioned against accepting any unfair bilateral agreements.
He said unfair and unequal negotiations can lead to welfare loss instead of utilising trade as a measure of growth.
Economists suggested reducing duties on US machinery, agricultural products, and semiconductors, which have low fiscal impact but high diplomatic value.
They also said the US may still be open to flexible arrangements, offering Bangladesh a window to influence outcomes through composed and strategic diplomacy.
Professor Mustafizur Rahman, executive director of the CPD, Anwarul Alam Parvez, president of the Bangladesh Chamber of Industries, and Shams Mahmud, managing director of Shasha Denims, also spoke at the event.