Bangladesh's export sector, particularly the ready-made garment (RMG) industry, is facing a major crisis following the imposition of a 37 percent tariff on Bangladeshi goods by U.S. President Donald Trump. This new tariff increases the cost of Bangladeshi products, which may result in reduced demand and negatively impact the country’s economy.
Historically, the United States has been Bangladesh's largest market for apparel, with garments making up 90 percent of the $8.4 billion worth of exports sent annually. In 2024, Bangladesh exported $7.34 billion in ready-made garments to the U.S., a significant increase from the previous year. However, the new tariffs are expected to increase prices and reduce demand, putting exporters under immense pressure.
Former BGMEA president Faruque Hassan warned that the tariff increase would lead to lower sales and price reduction pressures from buyers. "We expect that demand for our products will fall, and buyers will insist on lower prices, which will harm our exporters," Hassan stated.
Mustafizur Rahman, an expert from the Center for Policy Dialogue (CPD), noted that the new 37 percent tariff, added to the existing 15 percent duty, means that Bangladeshi exports will now face a total duty of around 50-52 percent in the U.S. market. He further explained that this could lead to reduced consumer demand for Bangladeshi goods, with a $10 garment potentially costing $15 under the new tariff structure.
The United States' trade deficit with Bangladesh has contributed to the imposition of these tariffs, and the Bangladesh government is now urged to open bilateral negotiations with the U.S. to address the issue. Mustafizur emphasized that Bangladesh must focus on reducing business costs and increasing competitiveness. He also advocated for diversifying export markets, especially toward regional markets, to mitigate the risks posed by over-reliance on the U.S.
Mohiuddin Rubel, former BGMEA director, pointed out that the new tariffs would affect global supply chains, but added that the restoration of U.S. industries would take time. "This will raise costs globally and lead to inflation in the U.S.," he said, highlighting the broader economic repercussions.
As Bangladesh faces these challenging times, the government, alongside exporters, will need to urgently seek solutions to protect the interests of the export sector and ensure its sustainability.
Bd-pratidin English/ Jisan
