Industry analysts in Bangladesh assess potential impact of US tariffs

(3 Apr 2025)
RESTRICTION SUMMMARY:

ASSOCIATED PRESS- ARCHIVE
Dhamrai, Bangladesh – 9 August 2021
1. Various of people working inside garment factory

ASSOCIATED PRESS
Dhaka, Bangladesh – 3 April 2025
2. SOUNDBITE (English): Faruque Hassan, Ex President, Bangladesh Garment Manufacturers and Exporters Association (BGMEA):
“Bangladesh is in a better situation to deal with U.S. because we import a lot of cotton from U.S.A, which is only we charge 1%, whereas India and China have imposed additional 15% on cotton import. Therefore, we are… our government should negotiate. We should discuss about this tariff and regularly, if necessary, any import taxes they should reduce it because US is our biggest market, and we want to continue to grow in U.S. because there are huge employment in our garment sector.”

ASSOCIATED PRESS – ARCHIVE
Dhamrai, Bangladesh – 9 August 2021
3. Various of people working inside garment factory

ASSOCIATED PRESS
Dhaka, Bangladesh – 3 April 2025
4. SOUNDBITE (English) Dr Mustafizur Rahman, Economist and Distinguished Fellow at the Centre for Policy Dialogue (CPD):
“Obviously, these additional tariffs will have adverse implications for the consumers, U.S. consumers. To that extent, the demand for Bangladeshi apparel and, for that matter, all imported apparels, will be adversely impacted. It will go down. We know that this is an elastic product. So, elasticity of demand will come into play and there will be adverse implications on the demand for Bangladeshi apparels and also apparel from other countries.”

ASSOCIATED PRESS- ARCHIVE
Dhaka, Bangladesh – 21 March 2021
5. Various of loading operations at the Dhaka Inland Container Depot
STORYLINE:
Bangladesh may be able to weather the storm of the Trump administration’s sweeping tariffs better than most thanks to its low import taxes on U.S. cotton but its powerhouse garment export industry will likely take a hit, industry analysts told the Associated Press.

U.S. President Donald Trump announced on Wednesday far-reaching new tariffs on nearly all U.S. trading partners — a 34% tax on imports from China and 20% on the European Union, among others — that threaten to dismantle much of the architecture of the global economy and trigger broader trade wars.

The package included a 37% tariff on Bangladesh.

Faruque Hassan, a former president of the Garment Manufacturers and Exporters Association, said it was vital for the Bangladeshi government to negotiate, as the U.S. is the country’s largest market for clothing exports.

But he was optimistic that there was scope for a deal.

"Bangladesh is in a better situation to deal with U.S.," he said, explaining that the country imports large amounts of U.S. cotton and charges only a 1% duty, whereas China and India charge 15%.

Bangladesh is the world’s second biggest clothing exporter after China. The garment sector employs more than 4 million workers in Bangladesh, mostly women from rural areas.

Dr. Mustafizur Rahman, an economist at the Centre for Policy Dialogue in Dhaka said the industry will be "adversely impacted."

"We know that this is an elastic product, elasticity of demand will come into play," he told the Associated Press, arguing that tariffs will weigh on consumers’ appetite to buy clothes, reducing demand for Bangladeshi exports.

AP video by Al Emrun Garjon

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