Trump's tariff: 25-30% of exports to US could be jeopardised, BKMEA president warns 

BKMEA President Mohammad Hatem. TBS Sketch

Bangladesh could lose 25-30% of its exports to the market unless US significantly reduces proposed reciprocal tariffs, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem has warned. 

Speaking to The Business Standard today, Hatem said he met with the Commerce Adviser Sheikh Bashir Uddin before and after the negotiations with US representatives last night (11 July).

According to him, the adviser discussed BKMEA's concerns and is moderately optimistic that tariffs may be lowered from the current 35% proposal.

However, Hatem noted that the final determination lies with the US administration, stating, "The issue has now become fully political. Its outcome depends on the government's ability to reach a political consensus."

Hatem highlighted the scale of the potential impact, saying, "Of our total $48 billion exports, $8 billion go to the US. We cannot safeguard the US market at the cost of losing the remaining $40 billion."

He added that if the tariffs are not sufficiently reduced, "25-30% of our exports to the US could be jeopardised."

The BKMEA president also cautioned that the already slim profit margins, often below 5%, cannot absorb higher tariff burdens, making it impossible for local exporters to share this cost.

"If the US buyers insist on sharing the imposed tariffs, Bangladesh would not be able to maintain that."

"If exports to the US decline, our businesses will seek alternative markets," Hatem warned. 

"This could spark unhealthy competition and prompt buyers in other regions to push prices down."