US tariff hike slams economy, not just RMG

Business Report:

A proposed 35 per cent tariff on Bangladeshi garment exports to the United States is expected to have far-reaching consequences, extending beyond the $8 billion in annual shipments, according to industry experts and economists. The impending tariff hike, scheduled to take effect on August 1, could ripple through Bangladesh’s entire economic ecosystem, impacting fabric suppliers, textile mills, banks, insurers, and millions of workers.

In a roundtable recently organized in the city, business leaders expressed deep concerns over the potential fallout. AK Azad, chairman and CEO of Ha-Meem Group, warned that if Bangladesh fails to negotiate effectively, the entire supply chain, from raw material suppliers to exporters, could suffer.

The increased duties, which are a significant jump from the previous 16 per cent duty and the recent 35 per cent announced in July, are set to disrupt trade flows. The US had temporarily paused the implementation of higher tariffs for 90 days, but the deadline is approaching. Industry insiders noted that US buyers have been frontloading orders, causing a surge in exports during the first five months of the year, but uncertainty remains about future demand.

Rubana Huq, former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), emphasised that the impact would extend beyond US-bound shipments.