Rubana Huq, Former President, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has voiced grave concerns following US President Donald Trump's announcement of a 35 per cent tariff on Bangladeshi imports. Huq warns, this significant tariff could have a devastating impact on Bangladesh's vital export sector.
The tariffs will prove disastrous for Bangladesh's export sector, states Huq. Highlighting the competitive disadvantage this places Bangladesh in, she explains, when Vietnam exports garments at a 20 per cent tariff, we will have to pay 35 per cent. And we are still not certain whether the existing 16 per cent will also be added.
The potential addition of the existing tariff would exacerbate the situation, leading to what Huq described as a ‘terrible’ scenario. Expressed uncertainty regarding ongoing negotiations, she notes, it is not known whether the government is negotiating or has negotiated with the United States.
Despite the immediate concerns, Huq believes, a window for diplomacy remains open with Bangladesh having time until August to reduce these tariffs through discussions.
