Bangladesh should either remove or significantly reduce tariffs on its imports from the United States to remain competitive against its rivals, two apparel exporters said today.
The country imports agricultural commodities, construction materials, and other goods from the US. Reducing tariffs to zero could help ensure lower duties on Bangladesh’s exports to the American market, said Shams Mahmud, managing director of Shasha Denims, a leading exporter.
His remarks come as Bangladesh is set to face a 37 percent tariff on its exports to the world’s largest economy.
With the new US tariff structure under the Trump administration, apparel exports from India and Pakistan may become cheaper than those from Bangladesh, as these countries have reduced duties on US products, he said.
“To stay competitive in the US market, we need to bring down import duties on American products to zero,” Mahmud added.
“The US tariffs pose significant challenges for Bangladesh. Higher export tariffs than competitors and uncertainty over industry relocation from China threaten trade. Bangladesh’s reliance on import taxes for revenue now clashes with the need to ease duties in response.”
As the country nears LDC graduation, the transition appears uncertain, requiring reassessment. The RMG sector, heavily impacted by US measures, may strain macroeconomic stability. “The overall stability of Bangladesh will now be in stress,” Mahmud noted.
Mohiuddin Rubel, additional managing director of Denim Expert Ltd, noted that Bangladesh is not the only country affected.
“All 60 countries facing these tariffs will feel the impact,” he said.
However, tariffs on Bangladesh’s competitors have also risen. For instance, China will face a 34 percent tariff, Vietnam 46 percent, Indonesia 32 percent, and India 26 percent, he said.
“Undoubtedly, all will suffer,” he said, adding that the cost of goods in the US will rise, leading to higher inflation.
Rubel also noted that exports from the US’s neighbouring countries, such as Honduras, could increase as a result.
“Bangladesh should engage in negotiations with the US to bring tariffs down to a minimum level so that we can compete effectively with our rivals,” he said.
“We should act immediately.”
