Bangladeshi firms expect milder cost pressures from global tariffs: HSBC survey

Bangladeshi businesses have, thus far, experienced lower-than-average cost increases from tariffs and anticipate milder cost escalations in both the short and long term, according to HSBC’s 2025 Global Trade Pulse Survey.

The survey, which gathered insights from over 5,700 international firms across 13 markets, including 250 companies in Bangladesh, found that Bangladeshi businesses are comparatively less impacted by tariff-related cost increases and expect this trend to continue in the foreseeable future.

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However, the average expected revenue impact due to supply chain disruptions in Bangladesh is five percentage points higher than the global average, according to an HSBC press release.

In response to escalating trade challenges, local firms have implemented proactive measures such as enhancing data analytics capabilities, developing risk management frameworks, diversifying supply chains, and conducting scenario-based simulations. Many are also reorienting their trade strategies toward Europe, the USA, and South Asia.

“The survey findings highlight the adaptability of Bangladeshi businesses and their optimism in embracing change. With our global expertise and extensive international network, we are ideally positioned to collaborate,” said Md Mahbub ur Rahman, chief executive officer of HSBC Bangladesh.

Globally, 73 percent of firms anticipate further cost increases in the short term, while 72 percent expect sustained pressure over the longer term. Approximately 78 percent are re-evaluating their long-term business models, with 43 percent considering adjustments to their international expansion strategies.

Moreover, 89 percent of businesses worldwide remain confident in the prospects for growing international trade over the next two years. Many are adopting nearshoring and reshoring strategies, while 77 percent believe that trade-related challenges have spurred innovation.

Bangladesh is also strengthening its trade relationships with key partners, including China (54 percent), the US (58 percent), and Europe (65 percent), aligning with the broader trend of emerging trade corridors across Asia and beyond.

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