Yesterday, the U.S. administration sent a formal letter to Bangladesh’s leadership proposing a 35% blanket tariff on all Bangladeshi goods entering the U.S. market starting August 1, 2025, unless new reciprocal trade terms are negotiated.
For Bangladesh’s apparel sector which accounts for over 80% of our national export earnings and employs millions this proposal represents a major shift in our trading relationship with one of our largest markets.
Currently, Bangladeshi apparel exports to the U.S. face average tariffs of 15–20% with no preferential trade agreement, unlike the duty-free access we enjoy in the EU under EBA. Competitor countries such as Vietnam benefit from trade deals that strengthen their position in key markets and make them attractive sourcing partners.
An increase to 35% would significantly reduce Bangladesh’s price competitiveness and could lead to order diversion, reduced factory utilization, and broader economic impact.
This moment calls for a clear, coordinated, and professional response.
Key recommended actions:
-Engage in high-level diplomatic dialogue to negotiate balanced, fair trade terms.
-Strengthen industry advocacy, highlighting Bangladesh’s role in global supply chains and its strong record on compliance and sustainability.
-Diversify export markets to reduce single-market dependency.
-Invest in value addition, operational efficiency, and sustainable practices to maintain competitiveness.
Bangladesh’s apparel industry has shown remarkable resilience and adaptability over decades. Addressing this proposed tariff requires collaboration among government, industry leaders, international partners, and buyers to ensure continued growth and stability for our sector and economy.
Author- Usama Maqsood Director, Experience Group
