Apparel exporters warn of $250m monthly hit if US tariff not fully withdrawn
They say 1,000 factories may struggle to survive if tariff remains
Highlights:
- Such huge burden could see 1,000 factories shutting down, business leaders say
- They urge Chief Adviser Muhammad Yunus to continue diplomatic efforts to ensure lasting resolution
- Businesses fear buyers will pass on tariff burden to suppliers
- Urge government not to give premature commitments to US regarding trade
Apparel exporters have expressed deep concern over the imposition of a 37% tariff on ready-made garment (RMG) exports to the United States, warning that the sector could face an average monthly duty burden of $250 million unless the duty is permanently withdrawn.
Industry leaders say nearly 1,000 factories may struggle to survive if the high tariff remains in place. They urged the interim government to initiate high-level dialogue with the US administration to secure a lasting resolution.
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These concerns were raised today (19 April) at the inauguration and prayer session of the Sammilita Parishad's election office for the 2025–2027 BGMEA Election, held at Giant Business Tower in Uttara.
Sammilita Parishad panel leader Md Abul Kalam said, "The 90-day suspension of the 37% tariff is undoubtedly a positive step, and we thank Chief Adviser Prof Muhammad Yunus for writing to Donald Trump on this issue. However, the lack of a permanent resolution continues to worry us."
He added, "We call on Prof Yunus to continue diplomatic efforts and directly engage with the US government. Without a complete withdrawal of this tariff, our sector will be burdened with $250 million in additional duties each month. Given our profit margins of just 3%–4%, nearly 1,000 factories may not survive this strain."
Kalam further pointed out that while buyers are traditionally responsible for paying tariffs, many are now passing the cost onto suppliers, placing even more pressure on manufacturers.
Former BGMEA president and Sammilita Parishad Chief Coordinator Faruque Hassan said, "The consistent progress of our industry has been driven by Sammilita Parishad's leadership.
He also called on the government to seek a minimum three-year extension of Bangladesh's graduation from Least Developed Country (LDC) status.
Commenting on the US trade approach, Hassan said, "The current tariff system is not reciprocal. The US has imposed these duties to address its trade deficit, but reducing imports is not a viable solution. While we're open to increasing imports from the US, the government must avoid hasty commitments."
Sammilita Parishad President Quazi Moniruzzaman urged all stakeholders to work together for a unified victory in the upcoming BGMEA election.
Other speakers included BNP leader Zainul Abdin Farroque, Bangladesh Garments Buying House Association President Mofazzal Hossain Pavel, BGMEA Advisory Committee Member Asif Ashraf, and Bangladesh Apparel Youth Leaders Association (BAYLA) President Abrar Hossain Sayem.
