Bangladesh, the world's second-biggest garment manufacturer, holds hope to reduce the 35 percent tariff that US President Donald Trump said he will impose, the country's top commerce official told AFP on Tuesday.
US President Donald Trump on Tuesday adjusted an earlier tariff hike announced in April, lowering it slightly from 37 percent to 35 percent on Bangladeshi textile and garment imports. While still steep, it marks a slight reprieve from what industry leaders describe as a looming crisis.
“We are hopeful of a reduction,” said Commerce Secretary Mahbubur Rahman, confirming that the Office of the United States Trade Representative (USTR) has sent a new draft for review. “Our national security adviser and commerce adviser are working on the issue in Washington,” he added.
Garment sector on edge
Bangladesh exported $8.36 billion worth of goods to the US in 2024—primarily clothing—while importing just $2.21 billion. President Trump has repeatedly cited this trade imbalance as justification for imposing tariffs that are more than double the existing 16 percent levied on cotton products.
The proposed tariffs have rattled an industry still recovering from last year’s student-led revolution that toppled the previous government. Interim Prime Minister Muhammad Yunus is expected to raise the matter directly with US officials.
“This is a big challenge for the garment sector,” said Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). “We had expected something closer to 10-20 percent.”
Economic fallout looms
Leading US brands such as Fruit of the Loom, Levi Strauss, and VF Corp (which owns Vans, Timberland, and The North Face) rely heavily on Bangladeshi suppliers. Industry stakeholders worry the tariff increase could make Bangladesh less competitive globally and trigger job losses.
Former BGMEA director Mohiuddin Rubel warned that the impact could be severe. “The new tariffs raise worries about job losses in Bangladesh as the US is its main export market,” he said. “Bangladesh needs to act quickly by engaging US importers to push for policy changes, resuming high-level trade talks, and highlighting the importance of its products.”
In a bid to ease trade tensions, Dhaka has proposed to purchase Boeing aircraft and increase imports of US wheat, cotton, and oil.
As the August 1 deadline set by the Trump administration nears, all eyes in Bangladesh’s export-driven economy remain fixed on Washington—hoping that diplomacy and trade ties can prevent a major blow to one of the world’s largest garment-producing nations.
