Staff Correspondent:

The newly imposed 37% tariff by the US government is expected to severely impact Bangladesh’s ready-made garment (RMG) sector, warned former BGMEA vice president Rakibul Alam Chowdhuryon Thursday (April 3).

“It is a major threat for us. Our competitors, India and China, will benefit from the new tariff structure as their rates are comparatively lower than Bangladesh’s during a response on the US tarrifs imposed by Donald Trump.

He explained that buyers bear the cost of duties, and if US buyers find that the added tariff increases the product price beyond their market threshold, they will seek alternative sourcing to minimise costs.

Meanwhile, rising costs of manufacturing—driven by wage hikes and soaring inflation—are making it increasingly difficult for Bangladeshi manufacturers to stay competitive, Rakibul said.

“We are in discussions with buyers to maintain orders already in the pipeline. They, too, are assessing the situation and looking for a viable solution,” he added.

Addressing the 74% tariff imposed by Bangladesh on American products, Rakibul noted that the country imports very little from the US.

“Imposing such a high tariff is unrealistic, which prompted the US government to introduce this new tariff,” he remarked.

He urged the government to reassess its tariff policy and engage in diplomatic efforts to convince the US to withdraw the new tariff.

“Otherwise, our RMG sector will be in serious danger,” he warned.