Stock investors in Bangladesh are growing increasingly concerned after the US government imposed higher import duties on Bangladeshi products—a move that could hurt exports and the profitability of export-oriented listed firms.

Bangladesh's stock market has been struggling for several years due to the poor performance of listed firms, exacerbated by the Covid-19 pandemic and the Russia-Ukraine war.

Additionally, recent political uncertainty and internet shutdowns have significantly impacted corporate profitability.

Most listed firms have reported lower profits, while many have incurred losses.

Since these companies are export-oriented, they will now be affected by the higher import duty, which will once again hit stock market investors.

Mia Rubel Hossain, a stock investor, said the decision would negatively impact many listed ready-made garment manufacturers and pharmaceutical companies, as they have substantial exports to the US.

"Either their exports will decline, or their profits will shrink—or both. As a result, these companies may not be able to offer good dividends," he said.

The Dhaka Stock Exchange (DSE) has 58 listed RMG and textile companies, a large portion of which are export-oriented. Among the 34 listed pharmaceutical companies, a few export medicines to the US.

Saiful Islam, president of the DSE Brokers Association of Bangladesh, said the impact on the stock market could be twofold—first, by reducing the exports and profits of export-oriented firms, and second, by squeezing business opportunities in the financial sector.

"If exports to the US decline, the financial sector's trade financing will also be affected. The government should take proactive steps to address the situation," he said.

As this is a reciprocal tariff, he expressed hope that the government would reconsider its import duties on US products.

"Most of the goods Bangladesh imports from the US are not produced locally, nor is there any possibility of producing them here. So, the tariff can be reduced, which could help avoid a high tariff on our exports," he added.