Business Report :
Bangladesh remains competitively positioned in the US market after the imposition of a 20per cent retaliatory tariff on its exports, down from an earlier proposed 35per cent, the president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has said.
Calling the situation “manageable and relatively reassuring,” BGMEA President Mahmud Hasan Khan Babu said on Friday to the media that the current tariff rate was now almost at par with, or in some cases even lower than, that of Bangladesh’s competing countries, which offered some relief.
Mahmud added that Bangladesh would be able to gradually overcome the challenge.
However, the BGMEA president warned that the new tariff could put pressure on US importers, who would now be paying around 20per cent more for Bangladeshi goods.
This might affect their purchasing power and consumer spending, he noted, potentially leading to a temporary dip in orders and pricing pressure.
“Our position remains relatively comparable to that of our competitors, so any initial negative impacts will likely ease over time,” Mahmud said.
The United States has reduced its reciprocal tariff on imports from Bangladesh from 35 percent to 20 percent, bringing some relief to the country’s export sector amid global trade uncertainties.
The announcement was made in a White House statement issued Friday (August 1), following an executive order signed by US President Donald Trump a day earlier.
The order introduces new counter-tariff rates ranging from 10 to 41 percent on imports from several countries and territories.
According to the order, India will face a 25 percent tariff, Taiwan 20 percent, South Africa 30 percent, Pakistan 19 percent, Afghanistan 15 percent, Brazil 10 percent, Indonesia 19 percent, Malaysia 19 percent, Myanmar 40 percent, the Philippines 19 percent, Sri Lanka 20 percent, and Vietnam 20 percent.
The new rate is in line with those offered to other major apparel-exporting countries such as Sri Lanka, Vietnam, Pakistan and Indonesia. India, which failed to reach a comprehensive agreement with Washington, will face a steeper 25per cent tariff.
The readymade garments sector is the backbone of Bangladesh’s economy, accounting for more than 80per cent of total export earnings, employing about 4 million workers, and contributing about 10 percent to gross domestic product.
Earlier, the prospect of higher U.S. tariffs has rattled Bangladesh’s ready-made garments industry, which fears losing competitiveness in one of its largest markets.
