Bangladesh’s exports to US may fall by up to $1.25b under current tariff regime: RAPID study
The study also warns that Bangladesh’s exports to the US could decline by more than 17% if a US-India trade deal succeeds and the tariff rate for India is reduced from the existing 50% to Bangladesh’s current level of 20%
Bangladesh's exports to the United States could decline by as much as $1.25 billion if the current US tariff regime continues in the long term, according to a new study by the Research and Policy Integration for Development (RAPID).
The study findings, unveiled today (16 September), project that overall US imports may fall by up to 14% under the existing tariff rates, with apparel imports alone shrinking by more than $10 billion.
Consequently, it estimates, Bangladesh's exports to the US may contract by around 14.3% – equivalent to $1.25 billion – of which $1.08 billion would come from apparel.
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"With the contraction of the US market, Bangladesh's exports to the US are likely to decline by 14.3%, or approximately $1.25 billion, of which $1.08 billion would be apparel," RAPID Chairman Mohammad Abdur Razzaque said.
He added, "Although Bangladesh is relatively better placed compared to some competitor countries in terms of tariffs, the US market will shrink due to stagflation, making it unlikely for Bangladesh to expand its share in the market."
"An increase in garment exports to the US market is almost impossible," Razzaque opined in his presentation at a workshop titled "Implications of US Reciprocal Tariff and LDC Graduation: Concerns and Options for Bangladesh," held at CIRDAP in Dhaka.
The RAPID study also warned that Bangladesh's exports to the US could decline by more than 17% if a US-India trade deal succeeds and the tariff rate for India is reduced from the existing 50% to Bangladesh's current level of 20%.
