Exporters rush as US tariff exemption deadline looms on 7th August

Business Report :

The United States Customs and Border Protection (CBP) has announced a stringent deadline for shipments to qualify for exemptions from recent tariff hikes on imports, including products from Bangladesh.
According to a CBP notification, goods that are already en route and on their final transport before 12:01 a.m. Eastern Daylight Time (EDT) on 7th August 2025, and entered or withdrawn from warehouses before 12:01 a.m. EDT on 5th October, will be spared the increased duties.
This narrowly defined exemption window has prompted a surge in shipments as exporters and logistics firms rush to meet the deadline. Bangladeshi exporters, who heavily rely on the US market, are among those eager to clear their goods before the cutoff, with many accelerating shipments from late July into early August.
Sector insiders said apparel exporters, in particular, are feeling the pressure as they tried to ship all ready goods before 7th August to avoid the newly imposed 20 percent reciprocal tariff on Bangladeshi apparel.
From 8 August, Bangladeshi-made readymade garment exports to the USA will face tariff at a rate of 36.5 per cent which includes 20 per cent reciprocal and existing 16.5 per cent tariff.
Earlier in April, Trump had initially threatened extra tariffs of up to 37 percent on exports from Bangladesh and several other countries over the US trade deficit. The move was suspended for three months to allow negotiations, which concluded with the reduced rate.
Moreover, trade activity has visibly intensified at both Chittagong port in Bangladesh and various US entry points, with vessels departing just ahead of the deadline. Industry insiders anticipate a significant rush at factories and ports in the coming days to meet the US deadline and avoid higher duties.
As businesses adjust their sourcing and supply chain strategies in response to these trade dynamics, the coming weeks will be critical for Bangladeshi exporters aiming to mitigate the impact of the tariff adjustments.
Bangladesh’s bilateral trade with the United States reached $10.58 billion in 2024, with a trade surplus of $6.15 billion, driven primarily by the country’s competitive advantage in garment manufacturing.
According to data from the US Department of Commerce, the US imported $8.37 billion worth of goods from Bangladesh in 2024, while exports to Bangladesh stood at $2.21 billion.