The International Chamber of Commerce (ICC) has termed the United States’ newly announced reciprocal tariff plan a serious jolt to the global trading system, cautioning that the move could destabilise international commerce if met with retaliatory measures.
At a press briefing held in Dhaka on Monday, ICC Bangladesh President Mahbubur Rahman presented an official statement from ICC Secretary General, following the announcement of the US trade policy shift. The Paris-based ICC is the world’s largest business organisation, representing over 45 million companies across more than 170 countries.
“What we’ve seen today represents a watershed moment in American trade policy that poses severe downside risks to the global economy,” the ICC stated, adding that current US tariff rates have reached levels not seen since the 1930s, exceeding even the reach of the infamous Smoot-Hawley Act.
While describing the US move as a shock, the ICC stressed that a systemic global crisis is not inevitable—provided other countries respond with restraint.
“The US may be an economic superpower, but it accounts for just 13 percent of global imports. The broader consequences will depend on how other nations choose to react.”
The ICC urged governments to prioritise dialogue over retaliation, warning that escalating trade tensions through reciprocal tariffs would result in mutual losses. “Tariff retaliation is a lose-lose game,” the statement said.
The organisation expressed particular concern over the potential harm to emerging economies, which may face disproportionate setbacks due to the newly imposed tariffs.
“Such measures risk further undermining the development prospects of countries already grappling with worsening terms of trade," according to ICC.
Given the rapid implementation timeline of the US measures, the ICC also warned of looming supply chain disruptions and customs delays. Businesses across its global network are urgently seeking clarity from US authorities regarding the practical application of the tariffs, especially their interaction with sector-specific duties and rules of origin.
The statement further underscored the broader threat to the rules-based multilateral trade system.
“While we appreciate the US administration’s desire to ensure a level playing field, we remain deeply skeptical that unilateral tariff escalation can achieve that goal. Long-term, multilateral solutions are essential to address the structural flaws in the global trading framework.”
Also present at the event were Fazlul Haque, former president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA); Kamran T Rahman, president of the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI); Abdul Hai Sarkar, chairman of the Bangladesh Association of Banks (BAB); and Simeen Rahman, CEO of Transcom Group.