The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has expressed optimism regarding the recent reduction in reciprocal tariffs imposed by the United States on Bangladeshi exports. In a statement issued by BGMEA President Mahmud Hasan Khan, he noted that the US administration has lowered the reciprocal tariff from 35% to 20%, easing previous concerns among Bangladeshi exporters.
Khan highlighted that the reduction provides some relief amid ongoing uncertainty over trade tariffs. “While the reciprocal tariff is still slightly higher than Pakistan’s by 1%, it is 5% lower than India’s and 10% lower than China’s, which helps Bangladesh remain competitive,” he said.
The BGMEA leader acknowledged that the increased tariffs could temporarily slow down business activity, as US buyers might face higher costs, potentially leading to reduced orders. He emphasised that these additional duties would ultimately be passed on to US consumers, urging Bangladeshi exporters to communicate this clearly to their partners.
Khan also recalled the initial tariffs introduced in April under the Trump administration, which started at 10% for all countries. Despite challenges, Bangladeshi suppliers managed to navigate the situation, often bearing some of the extra costs at the behest of US buyers.
Regarding China, he mentioned that the upcoming final reciprocal tariff rate is expected to be at least 30%, aligning with current US tariffs on Chinese goods. This may encourage US companies to shift orders from China to Bangladesh, given the competitive tariff environment, provided Bangladesh maintains sufficient energy supplies, port capacity, and political stability.
Khan stressed the importance of Bangladesh’s trade delegation securing a comprehensive agreement that safeguards national and trade interests. He also called for strict implementation of commitments made during tariff negotiations, including short-term purchases of wheat, cotton, LNG, and long-term agreements such as buying aircraft, warning that neglect could lead to future difficulties.
Overall, Khan remains optimistic that the manageable tariff hike can be navigated effectively, ensuring Bangladesh’s continued competitiveness in the global garment market.
