KATHMANDU, April 4: As the United States, under President Donald J. Trump, implements sweeping tariff revisions on imports, concerns are mounting over the global impact. However, trade analysts suggest that Nepal could turn these shifts to its advantage—if it strategically attracts investment in sectors benefiting from the new tariff landscape.
On Wednesday, President Trump announced an overhaul of US tariff policies, imposing a minimum 10 percent import duty across the board, while raising reciprocal tariffs by as much as 67 percent on select countries.
Former Commerce Secretary Purushottam Ojha told Republica that Nepal has an opportunity to capitalize on these tariff changes by bolstering exports of goods already performing well in the US market. He pointed to Nepal’s potential to expand its footprint in the readymade garment sector, currently dominated by Bangladesh, Cambodia and Vietnam. "To fully seize this opportunity, we must attract significant investment in these sectors," Ojha emphasized.
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According to international media reports, the new US tariff regime includes a 26 percent tariff on imports from India, 46 percent on Vietnam, 34 percent on China, 32 percent on Taiwan, 20 percent on the European Union and 25 percent on South Korean goods.
Ojha, however, expressed concerns over how these shifts might impact Nepal’s Duty-Free, Quota-Free (DFQF) access to the US market. Under the Nepal Trade Preference Program (NTPP), established in 2015, Nepal currently enjoys duty-free access to 77 products—including carpets, Pashmina, headgear, shawls, scarves and travel goods—until December 2025.
Economist Biswash Gauchan believes that amid the shifting trade dynamics, Nepal could attract increased foreign direct investment (FDI). “Nepal should position itself as an international hub for ready-made garment manufacturing,” Gauchan suggested.
Data from the Trade and Export Promotion Center reveals that Nepal earns significant export revenue from woolen carpets, dog food, felt products, readymade garments, Pashmina, and handicrafts, among others, in the US market. Until two years ago, Nepal even maintained a trade surplus with the US.
In the Fiscal Y (FY) 2023/24, Nepal’s exports to the US stood at Rs 17.31 billion, while imports reached Rs 19.48 billion. The previous year, Nepal had recorded a slight trade surplus, with exports of Rs 19.57 billion against imports of Rs 19.42 billion.
As global trade undergoes recalibration following the sweeping tariff revision, experts say Nepal’s ability to adapt and attract investment in key sectors will determine whether it emerges as a beneficiary of these new tariff structures.
