American clothing brands and retailers are pressing their Bangladeshi suppliers to absorb a portion of new tariffs levied by the Trump administration, squeezing the already thin margins of garment exporters.
Exporters' efforts complement the government's strategic deals to lower tariffs
Trump admin has reduced tariffs on Bangladeshi goods from 35% to 20%, a move expected to strengthen the country’s competitiveness against rivals such as India and Vietnam
Under the new policy, Bangladesh will face a 20 percent tariff
The deal for Dhaka was secured just hours before a midnight deadline set by President Donald Trump
As the tariff talks between Bangladesh and the United States wrap up today, Dhaka is expecting a deal that would see tariffs on its exports to the American market well below the steep 35 percent rate imposed by the Trump administration from August 1.
Bangladesh is now racing to finalise a deal before the window closes on August 1.
Trump's unilateral tariffs: Undermining global trade rules for 'America First'
Bangladesh will send the work plan to the United States Trade Representative (USTR) within the next week to reduce the trade gap as part of the efforts to bring down Trump’s reciprocal tariff, currently on pause until July 9.
In a first move to address the shortfall, Sylhet's Osmani International Airport is set to launch dedicated cargo operations today
The United States Trade Representative (USTR), the US government’s chief trade negotiation body, wants to see Bangladesh’s work plan on narrowing the bilateral trade gap before the Trump administration makes a call on reciprocal tariffs.
Local suppliers have secured adequate work orders from US clothing retailers and brands to stay busy until Christmas at the end of this year, although the shipments are likely to be subject to Trump’s reciprocal tariffs.
Safety standards in Bangladesh’s garment sector saw a marked improvement after the disastrous Rana Plaza collapse in 2013, but there is still a need for other sectors to improve in this regard, Labour Reform Commission chairman Syed Sultan Uddin Ahmed said in an interview yesterday.
Bangladesh's limited trade diplomacy, coupled with its slower shift towards value-added production, could allow Vietnam to surpass it in global rankings
This includes allowing more duty-free imports from the US, offering warehouse facilities for American cotton and removing various non-tariff barriers.
Trump's announcement sent businesses scrambling. Orders froze. Buyers demanded discounts. Stock markets plummeted.
With China, Vietnam and Cambodia vying for market share, Bangladeshi exporters fear a race to the bottom on prices -- one they may not win
Exporters in Bangladesh’s garment sector face a moment of reckoning over how they will manage urgent international shipments after India abruptly closed a transshipment route that had grown popular for air cargo.
