Actual impact will depend on how US retailers respond: Mostafa Abid Khan
Mostafa Abid Khan also dismissed the notion that Bangladesh would receive special benefits as a Least Developed Country in this case
The actual impact of the reciprocal tariff will depend on how US retailers respond and whether they shift their orders to other countries, said Mostafa Abid Khan, former member of the Bangladesh Trade and Tariff Commission (BTTC).
He noted that the proposed reciprocal tariff rates imposed on Bangladesh by the United States are higher than those on its key competitors such as Vietnam, China, India, and Pakistan.
He warned that if implemented, these rates would negatively impact the country's apparel exports to the US market.
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Speaking to The Business Standard, Mostafa noted that the proposed reciprocal tariff on Vietnam is 20%, on China 30%, and on India 27%. India is currently negotiating with the US to reduce this rate.
Pakistan and Indonesia, also major competitors of Bangladesh in the US apparel market, have been assigned lower proposed tariff rates than Bangladesh.
"You don't need to be an expert to see that if these proposed rates are enforced, Bangladesh's apparel exports to the US will suffer without a doubt," he warned.
However, the former BTTC member added that it is still difficult to predict the exact extent of the damage. Mostafa Abid Khan also dismissed the notion that Bangladesh would receive special benefits as a Least Developed Country (LDC) in this case.
"Expecting preferential treatment from the US because of our LDC status is unrealistic. The US has never extended trade preferences to LDCs, and under the current reciprocal tariff proposal, both Bangladesh and Myanmar, despite being LDCs, are slated to face higher duties than some developing countries," he explained.
According to the Export Promotion Bureau (EPB), Bangladesh exported $7.60 billion worth of apparel goods to the US in the fiscal year 2023–24 (July to June period), accounting for 17.09% of the country's total exports during that period.
Of this, woven garments were 25.93%, knitwear was 11.71%, and home textiles were 16.12%, destined for the US market.
Dr Mostafa Abid Khan is a former member of Bangladesh Trade and Tariff Commission
