Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan has welcomed the United States’ decision to reduce the retaliatory tariff on Bangladeshi goods from 35 percent to 20 percent, calling it a timely relief for the country’s export sector.
In a written statement issued on Friday evening, Khan said the elevated tariff over the past three months had created significant uncertainty for exporters and buyers alike. Operating under such unpredictability had proven difficult, with many US buyers closely monitoring developments. The tariff cut, he noted, brings much-needed stability to the trade environment.
Khan emphasized that higher tariffs on Bangladesh compared to its competitors would have been detrimental to the country’s apparel industry. However, with the new 20 percent rate, Bangladesh now stands on competitive ground—just 1 percent higher than Pakistan, but 5 percent lower than India and 10 percent below China. This revised rate, he said, positions Bangladesh advantageously in the global apparel market.
Despite the positive development, Khan warned that the increased tariff, even at 20 percent, could still strain US buyers, potentially leading to reduced orders if they struggle to manage additional financial pressures. Ultimately, the cost may be passed on to consumers, impacting retail prices and demand.
Reflecting on the broader trade context, Khan recalled that in April, the Trump administration imposed a minimum 10 percent retaliatory tariff on all imports. While many US buyers managed the impact creatively at the time, some pushed Bangladeshi suppliers to absorb part of the added costs. He urged local exporters to make it clear that the burden of these tariffs lies with the importers and buyers—not the manufacturers—and that consumers may ultimately bear the cost.
Addressing the ongoing trade landscape, Khan noted that China still faces a 30 percent retaliatory tariff, and a final rate announcement from the US President is expected soon. He believes the Chinese rate will not drop below Bangladesh’s, which could further shift orders from China to alternative sourcing destinations like Bangladesh. This presents a critical opportunity for the country to expand its export footprint, he said.
However, he cautioned that to seize this potential, Bangladesh must strengthen its energy supply chain, enhance port infrastructure—particularly at Chattogram—and ensure political stability. These factors, Khan stressed, are essential to transforming trade prospects into concrete growth.
Regarding the recent trade agreement with the US, Khan stated that the BGMEA has so far seen only a summary draft. Still, he expressed confidence that the negotiating team acted in the country’s best commercial and strategic interest.
He also reminded stakeholders that Bangladesh made several short- and long-term commitments during the negotiation process, including procurement of wheat, cotton, LNG, and even aircraft. He stressed the importance of fulfilling these obligations to maintain trust and avoid future complications.
Khan’s remarks reflect cautious optimism, underscoring both the opportunities and responsibilities that come with a more favorable trade arrangement in one of Bangladesh’s most crucial export markets.
