US tariff threatens $250m monthly RMG loss

Staff Reporter :

Bangladesh’s leading export sector, the ready-made garment (RMG) industry, could face a monthly duty burden of approximately $250 million – impacting nearly 1,000 factories – if the 37 percent tariff on exports to the United States is not fully withdrawn, industry leaders have cautioned.

The concern was raised during the inauguration of the Sammilita Parishad’s election campaign for the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Election 2025-2027, held at Giant Business Tower in Uttara.

Sammilita Parishad Panel Leader Md Abul Kalam welcomed the temporary 90-day suspension of the tariff, stating, “We sincerely thank the Chief Adviser of the interim government, Dr Muhammad Yunus, for writing to President Donald Trump on this matter.”

However, he expressed apprehension over the lack of a long-term solution. “We remain anxious, as there is no assurance the duty will not return once the 90-day grace period ends. We respectfully urge Dr Yunus to continue diplomatic efforts and engage directly with the US administration to secure a permanent resolution.”

Kalam stressed that a 37 percent tariff would impose an unsustainable burden on exporters. “Entrepreneurs in this sector typically operate on slim profit margins of just 3% to 4%. A duty of this magnitude could render approximately 1,000 factories unviable.”

While buyers are usually responsible for paying import tariffs, he noted that shifting trends indicate many are transferring the cost to suppliers.

Former BGMEA President and Chief Coordinator of Sammilita Parishad for the BGMEA Election 2025-2027, Faruque Hassan, acknowledged the panel’s contributions to the industry’s sustained growth and urged the government to request a minimum three-year extension of Bangladesh’s Least Developed Country (LDC) graduation timeline.

Addressing the US tariff regime, Hassan remarked, “If the tariff structure were reciprocal, our duties would be significantly reduced. Unfortunately, the current structure is aimed at addressing the US trade deficit. Simply increasing imports from the US will not resolve that.”

He added that while Bangladeshi businesses are open to diversifying trade, the interim government should avoid making premature or unfavourable commitments.

Sammilita Parishad President Quazi Moniruzzaman concluded the event by calling for unity among stakeholders to ensure a successful outcome in the upcoming BGMEA election.