Unless the full 37% tariff on exports of ready-made garments to the U.S. market is withdrawn, Bangladesh’s leading export sector will have to pay an average of $250 million in tariffs per month. Around 1,000 factories could be adversely affected. Leaders in the apparel industry have called on the interim government to engage in discussions with the U.S. government and take necessary steps to eliminate the duty.
These concerns were voiced this afternoon (Saturday, March 19) at the inauguration and prayer ceremony of the Sammilito Parishad election office for the 2025–2027 BGMEA elections, held at the Giant Business Tower in Uttara.
Md. Abul Kalam, panel leader of Sammilito Parishad, said: “Suspending the 37% tariff on our exports to the U.S. for 90 days is undoubtedly a positive move. We thank the head advisor of the interim government, Dr. Muhammad Yunus, for writing a letter to President Donald Trump regarding this.”
However, expressing concern over the lack of a complete withdrawal, he added: “We must ensure that we do not face this tariff again after the 90-day period ends. Alongside diplomatic efforts, Dr. Yunus should engage directly with the U.S. administration in discussions.”
He further noted: “If the tariff is not permanently withdrawn, the garment sector will have to pay an additional $250 million in duties every month. Entrepreneurs in this sector typically make no more than 3% to 4% in profit. In such a situation, it will be nearly impossible for around 1,000 factories to survive under a 37% tariff.”
He also explained that while tariff payments are usually the buyer’s responsibility, the current buying patterns show that buyers are shifting these extra costs onto the suppliers.
Former BGMEA president and chief coordinator of Sammilito Parishad for the BGMEA 2025–2027 election, Faruque Hassan, said: “The consistent success of this industry owes a great deal to the contributions of Sammilito Parishad.”
He urged the government to delay the LDC graduation timeline by at least three years.
Speaking on the U.S. tariff structure, he remarked: “If tariff imposition were reciprocal, our duty rate would have been lower. In reality, they’ve imposed tariffs to reduce their trade deficit. Increasing imports alone won’t solve the deficit, but we are willing to increase imports. We urge the government not to make any undue promises on this matter.”
Sammilito Parishad president Kazi Moniruzzaman called for everyone to work in unity to ensure victory in the upcoming BGMEA elections.
Among others, BNP leader Zainul Abedin Faruk, President of the Bangladesh Garments Buying House Association Mofazzal Hossain Pavel, BGMEA auxiliary committee member Asif Ashraf, and President of the Bangladesh Apparel Youth Leaders Association (BAYLA) Abrar Hossain Sayem also spoke at the event.
