Bangladesh’s export sector faces mounting challenges following the United States’ announcement of a 35% tariff on imports from the South Asian nation. The tariff, set to take effect on August 1, is expected to raise the total import duty on Bangladeshi products to approximately 51%, combining the existing nearly 16% duty with the new levy. This development has led US buyers to suspend negotiations for new orders and to seek cost-sharing arrangements on shipments already underway.
Exporters in Bangladesh have expressed concern over the impact of the increased tariffs, especially in the country’s dominant ready-made garment sector, which exports over US $ 8.4 billion annually to the US. They report that the uncertainty surrounding the new duties is causing anxiety among suppliers, as buyers renegotiate costs for pending shipments.
Inamul Haq Khan Bablu, managing director of Ananta Garments Limited, disclosed that US buyers are requesting Bangladeshi suppliers to absorb a portion of the additional tariff costs on orders in the pipeline, which he estimates total around $2 billion. Similarly, SM Khaled of Snowtex Group highlighted concerns over competitiveness, noting that Vietnam’s tariffs have been finalized at just 20%, giving Vietnamese products an edge over Bangladeshi goods, which face a combined duty of about 51%.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has sought a meeting with Chief Adviser Professor Muhammad Yunus to discuss possible responses. As of Thursday evening, no schedule had been confirmed. BGMEA President Mahmud Hasan Khan Babu emphasized the need for diplomatic efforts, including appointing lobbyists to negotiate with US authorities and advocating for the industry’s interests.
Industry leaders have voiced frustration over the lack of transparency and engagement from the government regarding discussions with US officials. They criticize the delay in action and the absence of business input in decision-making processes, warning that the sector’s stability is at risk if swift measures are not undertaken to address the tariff dispute.
Bharat Tex Special Report 2026 
