20% US reciprocal tariff kicks in, triggers export surge at Ctg Port
The newly imposed 20% reciprocal tariff on Bangladeshi exports to the United States took effect at 10am on Wednesday, prompting a sharp surge in shipments from Chattogram Port as exporters rushed to beat the deadline.
According to the Chattogram Port Authority (CPA), an additional 800 containers are being exported daily due to the last-minute push, with priority support extended to exporters. By 8am on Wednesday, 15,400 twenty-foot export containers were recorded across 19 port depots, most of them destined for the US.
Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said many exporters expedited shipments ahead of the 7 August cutoff.
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"Those who had completed production early managed to export before 1 August," he noted. As a result, exports rose by 25% in July.
Abdus Salam, managing director of the Asian-Duff Group, reported that Bangladesh exported $3.96 billion worth of garments in July alone, $820 million of which went to the US. About 60% of that volume moved through Chattogram Port.
The reciprocal tariff, which had earlier stood at 37%, was reduced to 20% following the third round of bilateral talks on 31 July. However, with existing average US tariffs over 15%, total duties on Bangladeshi goods remain above 35%. Previously, tariffs on ready-made garments were around 16.5%.
Trade analyst and former Bangladesh Tariff Commission member Mostafa Abid Khan clarified that tariff enforcement is based on the time of port release. He noted that Bangladesh retains a partial advantage due to the exemption of countervailing duties on US-origin raw materials -- critical, as the country's garment sector is heavily reliant on imported American cotton.
Ruhul Amin Sikder, secretary general of the Container Depot Association, said exporters rushed containers to depots in advance to avoid the new tariffs.
"While monthly container exports typically range from 60,000 to 65,000, the figure jumped to 99,000 in July," he said, adding that 81,000 of those have already been shipped.
