BCI President Anwar-ul Alam Parvez welcomes US tariff reduction but warns of short-term order decline

Former Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president and current president of the Bangladesh Chamber of Industries (BCI), Anwar-ul Alam Chowdhury Parvez, expressed optimism over the recent US tariff reduction, stating that it is a positive development for Bangladesh's export competitiveness.

Speaking to The Business Standard (TBS), Anwar-ul Alam said, "This is good news for us. The reduced tariffs will help us remain competitive with our rival exporting countries. We will not lose market share due to tariff differences, as competing countries face similar rates."

However, he cautioned that the overall price of products in the US retail market is likely to increase. Citing American research data, he explained, "If tariffs increase by 20%, consumer demand in the US is expected to fall by 35%. Since we export low-cost apparel, that segment will be hit hardest."

He added that due to these factors, Bangladesh may see a decline in orders from the US market for the next one to one and a half years. "This dip will likely correct over time," he said.

Despite the anticipated short-term challenges, Parvez welcomed the US decision to lower tariffs to 20%, saying, "Overall, we are happy with the tariff reduction."

On 2 April, US President Donald Trump announced higher tariffs on several countries, citing trade deficit concerns. At that time, Bangladesh was subject to a 37% tariff.

Later, on 9 April this year, Washington suspended the tariffs for three months, giving countries an opportunity to negotiate with the US on the matter.

The three-month deadline ended on 9 July.

The day before, President Trump wrote to Bangladesh's interim government chief adviser, Professor Muhammad Yunus, informing him that the tariff for Bangladesh had been reduced to 35% from 37%. However, the tariffs were not enforced immediately after 9 July.

Countries were given until 31 July to reach trade agreements with the US to lower the tariff rates.

Later, yesterday (31 July), the White House announced a reduction of the tariff to 20%, after the final round of the talks took place between a Bangladesh delegation and US officials in the US capital.