'Opportunity for Bangladesh to grow its market share': BGMEA president welcomes US tariff cut
The reduced tariff presents an opportunity for Bangladesh to grow its market share — but only if we ensure consistent energy supply, increase Chattogram Port capacity, and maintain political stability, he said.
Commenting on the recent US decision to reduce tariffs on Bangladeshi goods, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan said the move brings much-needed relief to Bangladesh's apparel industry after months of uncertainty.
"For the past three months, we've been operating under considerable uncertainty due to reciprocal tariffs. Doing business under such conditions is extremely difficult," he said in a statement today (1 August).
"US buyers were also closely monitoring the situation. Finally, seeing the tariff reduced from 35% to 20% offers us some comfort."
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Mahmud noted that Bangladesh has consistently warned that higher countervailing duties compared to competitor countries would make business unsustainable. "Even though our tariff remains 1% higher than Pakistan's, it is 5% lower than India's and 10% lower than China's, which is a relief for us."
He acknowledged that the elevated tariff could temporarily impact trade volume.
"Higher import duties mean US buyers will have to pay more upfront, which may strain their capital. If they fail to arrange additional financing, they might reduce orders. Eventually, these additional costs are likely to be passed on to consumers, which could lead to a decline in retail sales."
Mahmud recalled that the first round of US tariffs, imposed by the Trump administration in April, set a minimum 10% countervailing duty on goods from all countries.
"US buyers managed that in various ways, but in some cases, suppliers in Bangladesh were pressured to share the burden. I want to clearly state to our BGMEA members: this time, it is the responsibility of importers and buyers to bear these additional duties, which will ultimately impact US consumers."
He added that China is still facing a 30% countervailing tariff, with final rates yet to be announced. "Early indications suggest China's final rate won't be lower than ours, which means the shift of orders from China to other countries is likely to continue. This presents an opportunity for Bangladesh to grow its market share — but only if we ensure consistent energy supply, increase Chattogram Port capacity, and maintain political stability."
While the full details of the recent trade agreement are not yet available, Mahmud expressed confidence in Bangladesh's negotiation team. "We hope the deal was concluded keeping the country's and business sector's interests in mind."
He emphasised that Bangladesh must fully implement the promises made during the negotiations.
"These include short-term commitments such as wheat, cotton, and LNG imports, as well as long-term obligations like aircraft purchases. Any failure in fulfilling these could bring renewed challenges," he said.
