Bangladesh remains competitively positioned in the US market after the imposition of a 20% retaliatory tariff on its exports, down from an earlier proposed 35%, 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 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.
He 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 20% 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 new tariff was announced after several rounds of negotiation between Bangladesh and the United States.
On Thursday, US President Donald Trump signed an executive order imposing retaliatory tariffs ranging from 10% to 41% on imports from several countries, including Bangladesh.
Under the new order, India faces a 25% tariff, Taiwan 20%, South Africa 30%, Pakistan 19%, Afghanistan 15%, Brazil 10%, and countries such as Indonesia, Malaysia, the Philippines and Sri Lanka between 19–20%. Myanmar has been hit hard with a 40% tariff.
