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THURSDAY, JULY 24, 2025
Trump tariffs deepen ceramic tableware exporters’ worries

Industry

Mahfuz Ullah Babu
03 April, 2025, 10:45 pm
Last modified: 03 April, 2025, 10:55 pm

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Trump tariffs deepen ceramic tableware exporters’ worries

According to EPB, Bangladesh’s ceramic product exports dropped to $33.09 million in the past fiscal year from $43.38 million in FY23

Mahfuz Ullah Babu
03 April, 2025, 10:45 pm
Last modified: 03 April, 2025, 10:55 pm
Infographic: TBS
Infographic: TBS

The 37% Trump tariff has further worsened the concerns of struggling ceramic tableware exporters, industry insiders said.

Despite their struggles to secure a decent margin for loan repayments amid the gas crisis, tableware exporters were counting on a recovery from the 2023-24 slump, seeing interest from some US buyers.

"Forget growth now – US importers will have to pay the entire additional duty even for consignments awaiting entry at a US port," Bangladesh Ceramic Manufacturers and Exporters Association President Moynul Islam told The Business Standard today.

His company Monno Ceramics pioneered tableware exports from Bangladesh in the 1980s. He recalls the 2013 experience in the US market when the withdrawal of duty-free market access under the Generalized System of Preferences (GSP) led to order cancellations, leaving exporters in jeopardy.

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"I am afraid existing US orders will be cancelled this time. Thank God our industry no longer depends heavily on the US market," he said.

According to the Export Promotion Bureau, Bangladesh's ceramic product exports dropped to $33.09 million in the past fiscal year from $43.38 million in FY23. Dominant tableware and kitchenware exports fell from $39.9 million to $30.16 million.

Since the withdrawal of GSP in 2013, the US market has remained insignificant for Bangladeshi exporters. Still, ceramic exports to the US declined further – from $4.1 million to $2.76 million.

"The industry's competence and resilience are high; we just need fair treatment," said Moynul Islam.

For instance, with its state-of-the-art facilities and rigorous research and development to satisfy the world's top buyers, Akij Ceramics took less than four years to raise its annual tableware exports to over $12 million in the European Union alone – thanks to duty-free access there, which the largest exporter, China, does not have.

Akij Ceramics had been developing new products for some US buyers to navigate the regular tariff before the introduction of the additional 37% levies.

"This additional tariff will increase product prices in the US market. The question is, are US consumers willing to pay this extra cost? Or will importers pass the additional charge on to exporters?" said Mohammod Khourshed Alam, the company's chief operating officer.

"Europe, Russia, and India are the biggest markets for Bangladesh," said Mohammed Humayun Kabir, former CEO of Shinepukur Ceramics. "The additional duty will hurt demand in the US, and exporters may suffer an immediate slowdown and margin shrink."

However, there remains hope for competent exporters in the mid to long term, he echoed others.

"Most exporting countries will face these tariffs. Our competitiveness will remain more or less the same, as this is not imposed on us alone," said Akij's Mohammod Khourshed Alam.

"We are analysing the impact of the new tariff on the US market, hoping that our government will successfully negotiate a reduction for Bangladesh," said MA Jabbar, managing director of DBL Ceramics, which is currently exporting ceramic tiles and exploring opportunities in tableware exports.

Top News

ceramic / Tableware / Trump Trade War / Bangladesh

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